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WASTE  IN  INDUSTRY 


WASTE  IN  INDUSTRY 


By  the  COMMITTEE  ON  ELIMINATION  OF 
WASTE  IN  INDUSTRY  of  the  FEDERATED 
AMERICAN  ENGINEERING  SOCIETIES 


FIRST  EDITION 
THIRD  IMPRESSION 


PUBLISHED  BY 

FEDERATED  AMERICAN  ENGINEERING  SOCIETIES 
WASHINGTON,  D.  C. 

McGRAW-HILL  BOOK  COMPANY,  INC. 

SOLE    SELLING   AGENTS 

NEW  YORK:  370  SEVENTH  AVENUE 

LONDON:  6*8  BOUVERIE  ST.,  E.  C.  4 

1921 


COPYRIGHT,  1921,  BY  THE 

AMERICAN  ENGINEERING  COUNCIL  OP  THE 

FEDERATED  AMERICAN  ENGINEERING  SOCIETIES 


"Engineering  is  the  science  of  controlling  the  forces  and  of  utilizing  the 
materials  of  nature  for  the  benefit  of  man,  and  the  art  of  organizing  and 
of  directing  human  activities  in  connection  therewith. 

"As  service  to  others  is  the  expression  of  the  highest  motive  to  which 
men  respond  and  as  duty  to  contribute  to  the  public  welfare  demands  the 
best  efforts  men  can  put  forth,  NOW,  THEREFORE,  the  engineering 
and  allied  technical  societies  of  the  United  States  of  America,  through 
the  formation  of  The  Federated  American  Engineering  Societies,  realize  a 
long  cherished  ideal, — a  comprehensive  organization  dedicated  to  the  service 
of  the  community,  state,  and  nation." 


Bngineerfnj 

Library 


PREFACE 


TOWARD  the  end  of  1920,  The  Federated  American  Engineering 
Societies  came  into  being,  through  the  convening  of  its  executive  body 
the  American  Engineering  Council.  On  November  19,  Herbert  Hoover 
was  elected  the  first  President,  and  among  his  first  acts  suggested  a  study 
into  the  restrictions  and  wastes  in  industry.  On  November  20,  the 
executive  board  authorized  the  appointment  of  a  committee  to  make 
such  an  investigation  and  immediately  thereafter  the  general  plans  were 
drafted  and  a  small  preliminary  committee  selected.  On  January  12, 
1921,  Mr.  Hoover  named  fifteen  engineers  as  the  Committee  on  Elimina- 
tion of  Waste  in  Industry  and  added  two  others  at  a  later  date,  making  the 
membership  seventeen  in  all. 

The  essence  of  the  plan  was  to  gather  quickly  such  concrete  informa- 
tion as  might  be  used  to  stimulate  action  and  to  lay  the  foundation  for 
other  studies.  It  was  believed  that  a  limited,  yet  carefully  studied 
volume  of  findings  obtained  through  a  rapid,  intensive  study  would  not 
impair  the  value  of  the  facts  disclosed  or  the  validity  of  the  recommenda- 
tions based  upon  them.  So  within  less  than  five  months  the  committee 
completed  an  assay  or  analysis  of  waste  in  six  typical  branches  of  industry, 
and  presented  a  summary  of  its  findings  to  the  American  Engineering 
Council.  This  took  place  on  June  3,  1921,  in  St.  Louis,  at  which  time 
a  condensed  news  abstract  was  given  to  the  press.  The  final  report  is 
now  presented  in  the  name  of  the  Committee. 

The  original  plan  contemplated  ten  investigations  in  the  field,  includ- 
ing transportation  and  coal  mining. 

A  study  in  the  pulp  and  paper  industry  was  dropped  for  lack  of  time 
and  funds.  One  planned  in  the  rubber  tire  manufacturing  industry  was 
likewise  dropped,  due  to  a  failure  to  secure  co-operation  in  the  industry 
itself.  The  other  six  studies  were  completed,  including  the  building 
trades,  men's  ready-made  clothing,  boot  and  shoe,  printing,  metal  trade*, 
and  textile  manufacturing,  and  form  the  second  section  of  this 
report.  The  studies  in  transportation  and  bituminous  coal  mining  have 
not  been  completed  to  be  included  in  this  report.  A  considerable  inves- 
tigation was  made  in  both  cases  but  it  was  found  that  these  two  fields 
were  of  such  large  proportions  and  the  situation  inherently  so  intricate 


vi  PREFACE 

that  adequate  studies  could  not  be  made  with  the  time  and  funds  available. 
It  is  hoped  that  in  the  immediate  future  resources  may  be  at  the  disposal 
of  the  Committee,  or  some  other  agency,  to  continue  these  studies. 

Furthermore,  a  regional  assay  comtemplated  in  the  City  of  Worcester, 
Mass.,  has  not  been  completed  in  a  form  to  become  part  of  this  investi- 
gation. 

In  addition  to  these  specific  field  studies,  seven  reports  of  a  statistical 
character  were  prepared,  each  of  them  dealing  with  some  aspect  of 
industrial  waste  or  its  elimination  on  an  extensive  or  nation-wide  basis. 
These  form  the  third  section  of  this  report. 

The  industries  selected  for  specific  study  are  of  great  public  importance, 
for  their  operation  directly  affects  the  daily  life  of  everyone. 

Further  studies  will  be  necessary  to  determine  the  extent  of  pre- 
ventable waste  in  American  industry.  Since  in  the  six  industries  studied, 
of  varied  character  and  enormous  annual  output,  waste  was  found  to 
be  very  large,  the  Committee  believes  that  studies  in  other  industries 
will  disclose  similar  preventable  wastes,  generally  traceable  to  the  same 
causes. 

The  extent  of  the  field  work  is  indicated  by  the  fact  that  some  fifty 
engineers  spent  a  time  approximately  equal  to  two  months  each  in 
securing  the  information  upon  which  the  industrial  reports  are  based. 
In  addition  thereto,  every  part  of  the  complete  report  has  been  submitted 
to  engineers  or  others  having  particular  knowledge  or  specific  experience, 
with  the  request  for  constructive  criticism  and  suggestions.  The  report 
as  a  whole  therefore,  represents  the  combined  effort  of  about  eighty 
engineers  and  their  associates. 

It  is  a  privilege  to  acknowledge  and  express  gratitude  for  all  this 
work  and  effort.  As  many  organizations  and  individuals  must  be  name- 
less because  of  the  general  promise  given  by  the  Committee  that  the 
firms  whose  plants  were  studied  would  not  be  mentioned  in  the  report, 
the  Committee  names  no  one  in  extending  this  credit,  but  does  express 
its  very  great  indebtedness  to  all  who  have  assisted. 

The  work  of  the  investigation  has  been  carried  through  at  cost  or  less. 
No  fees  have  been  paid  and  no  overhead  has  been  charged  for  field  or 
office  work.  The  engineering  firms  which  made  the  investigation  have 
been  reimbursed  only  for  the  actual  salaries  of  the  men  in  the  field  and 
for  their  traveling  and  clerical  expenses.  The  heads  of  these  firms  have 
spent  many  days  on  the  work  without  compensation.  All  of  the  office 
work  has  been  done  at  actual  cost  and  much  has  been  directed  without 
remuneration.  Had  we  paid  for  the  services  which  have  kept  some  fifty 
engineers  in  the  field  for  approximately  two  months  at  the  ordinary 
rates  for  such  professional  service,  the  cost  would  have  been  many  times 
larger. 


PREFACE  vii 

The  Committee  believes  that  this  study  of  waste  in  industry  will 
prove  of  lasting  benefit  to  the  industries  studied  and  to  the  public  which 
uses  their  products.  It  hopes  further  that  the  benefits  will  be  farther 
reaching,  and  will  extend  to  other  industries  by  stimulating  similar 
studies  and  outlining  the  methods  by  which  they  can  be  made.  The 
Committee  believes  that  such  additional  studies  will  prove  of  great  value 
and  that  through  intelligent  application  of  conclusions  reached,  American 
industry  will  take  another  long  stride  in  advance.  In  expressing  these 
beliefs  the  Committee  recognizes  that  many  of  its  findings  and  recom- 
mendations have  previously  been  pointed  out  by  individual  engineers, 
but  this  report  is  the  first  instance  of  a  collective  or  group  endorsement 
of  a  general  analysis  of  the  sources  and  causes  of  waste  and  recommenda- 
tions for  its  elimination. 

This  report  is  the  first  work  undertaken  by  The  Federated  American 
Engineering  Societies  in  rendering  public  service.  It  discloses  losses  and 
waste  due  to  the  restraint  and  dissipation  of  the  creative  power  of  those 
who  work  in  industry.  It  lays  the  foundation  for  knowledge  of  the 
destructive  influences  which  have  too  much  controlled  in  the  past.  From 
this  knowledge  will  grow  the  conviction  that  mental  and  moral  forces 
must  be  added  in  a  much  larger  degree,  to  the  physical  resources  now 
employed  if  industry  is  to  serve  all  who  are  dependent  upon  its  con- 
tinuous and  effective  operation. 

NEW  YORK  CITY,  N.  Y.,  June,  1921. 


FOREWORD 


THIS  reconnaissance  report  on  waste  in  industry  is  the  result  of  five 
months  of  intensive  study,  carefully  planned  and  rapidly  executed.  A 
part  of  its  value  lies  in  the  speed  with  which  the  work  has  been  done, 
and  the  promptness  with  which  it  presents  definite  lines  for  future  action. 
It  reveals  facts  which  may  serve  as  a  foundation  for  an  advance  in  Amer- 
ican industry.  It  has  a  special  message  for  government  officials,  financial, 
industrial  and  commercial  leaders,  labor  organizations,  economists, 
engineers  and  research  groups,  the  general  public  and  the  press. 

We  have  probably  the  highest  ingenuity  and  efficiency  in  the  opera- 
tion of  our  industries  of  any  nation.  Yet  our  industrial  machine 
is  far  from  perfect.  The  wastes  of  unemployment  during  depres- 
sions; from  speculation  and  over-production  in  booms;  from  labor- 
turnover;  from  labor  conflicts;  from  intermittent  failure  of  transportation 
of  supplies  of  fuel  and  power;  from  excessive  seasonal  operation;  from 
lack  of  standardization;  from  loss  in  our  processes  and  materials — all 
combine  to  represent  a  huge  deduction  from  the  goods  and  services  that 
we  might  all  enjoy  if  we  could  do  a  better  job  of  it. 

HERBERT  HOOVER. 


CONTENTS 


PREFACE         v 

FOREWORD  BY  HERBERT  HOOVER  ix 


PART  I 

SUMMARY  OF  DETAILED  REPORTS 

CHAPTEB  PAOE 

I.  INTRODUCTION 3 

II.  SOURCES  AND  CAUSES  OF  WASTE 8 

III.  RECOMMENDATIONS  FOR  ELIMINATION  OF  WASTE 24 

IV.  DESCRIPTION  OF  QUESTIONNAIRE   AND  EVALUATION  SHEET — QUESTION- 

NAIRE— EVALUATION  SHEET  .     34 


PART  II 
ENGINEERS'  FIELD  REPORTS 

V.  BUILDING  INDUSTRY 53 

VI.  MEN'S  CLOTHING  MANUFACTURING 95 

VII.  SHOE  MANUFACTURING 131 

VIII.  PRINTING 176 

IX.  METAL  TRADES 210 

X.  TEXTILE  MANUFACTURING 240 

PART  III 
GENERAL  REPORTS 

XI.  UNEMPLOYMENT  ;  263 

XII.  STRIKES  AND  LOCKOUTS 301 

XIII.  LEGAL  MACHINERY  FOR  ADJUSTING  DISPUTES 315 

XIV.  INDUSTRIAL  ACCIDENTS 331 

XV.  HEALTH  OF  INDUSTRIAL  WORKERS .       .       .  342 

XVI.  EYE  CONSERVATION     .       .       . .  .  .  374 

XVII.  PURCHASING  AND  SALES  POLICIES      .       .       .       .       .  .  .  .391 

INDEX .  .  .  .399 

xi 


PART  I 
SUMMARY  OF  DETAILED  REPORTS 

PAGE 

CHAPTER      I.  INTRODUCTION 3 

CHAPTER    II.  SOURCES  AND  CAUSES  OP  WASTE 8 

CHAPTER  III.  RECOMMENDATIONS  FOR  ELIMINATION  OF  WASTE      ....     24 

CHAPTER   IV.  DESCRIPTION  OF  QUESTIONNAIRE  AND  EVALUATION  SHEET — QUES- 
TIONNAIRE— EVALUATION  SHEET  .     34 


ELIMINATION  OF  WASTE  IN  INDUSTRY 

CHAPTER  I 
INTRODUCTION 

Responsibility  and  Opportunity — The  Point  of  View. — In  making  the 
studies  upon  which  this  report  is  based  and  in  prepariDg  the  report  itself 
there  has  been  no  purpose  or  desire  to  place  blame  upon  any  individual, 
group  or  class.  The  wastes  revealed  are  the  result  of  methods,  tactics, 
practices  and  relationships  of  long  standing  in  industry,  and  the  Com- 
mittee has  merely  desired  to  indicate  the  main  opportunities  for  elim- 
inating waste  and  to  show  whose  opportunity  or  responsibility  it  may  be 
to  adopt  proper  measures  for  such  elimination. 

No  attempt  has  been  made  to  write  an  academic  definition  of  waste 
or  to  speculate  in  regard  to  ultimate  savings.  For  the  purpose  of  this 
report  no  attempt  has  been  made  to  consider  all  economic  wastes.  Rather, 
in  the  Committee's  investigations  industrial  waste  has  been  thought  of 
as  that  part  of  the  material,  time  and  human  effort  expended  in  pro- 
duction represented  by  the  difference  between  the  average  attainments 
on  one  hand  and  performance  actually  attained  on  the  other,  as 
revealed  by  the  detailed  reports.  In  assaying  waste  in  industry  the 
Committee  has  undertaken  to  evaluate  this  difference.  Thus  it  has  estab- 
lished no  theoretical  standard  of  performance  or  excellence,  but  has 
developed  a  method  of  measurement  to  determine  the  degree  of  effective 
use  of  those  factors  within  which  it  was  believed  waste  might  be  discovered. 
It  has  conceived  that  a  given  practice  is  not  wasteful  until  a  better  has 
been  revealed,  and  that  the  value  of  a  newer  practice,  or  the  amount  by 
which  it  is  an  improvement  over  an  earlier  one,  can  only  be  determined 
by  units  and  methods  of  measurement. 

The  investigations  clearly  indicate  that  industrial  waste  is  caused 
not  only  by  failure  to  use  the  time  and  energy  of  living  men,  but  also 
from  failure  to  use  the  productive  equipment  which  has  resulted  from  the 
time  and  energy  expended  by  past  generations.  In  the  effort  to  eliminate 
waste  of  human  energy,  it  is  recognized  that  more  must  be  accomplished 
in  the  same  time,  or  the  same  accomplished  in  less  time,  and  to  this  end 
the  vast  heritage  of  recorded  knowledge  of  past  experiences  must  be 
made  available  to  an  ever  increasing  number  of  men. 

3 


WASTE  IN  INDUSTRY 


Thus  the  first  work  of  the  Committee  was  to  set  up  units  and  methods 
of  measurement  in  an  endeavor  to  determine  and  to  proportion  the  main 
constituents  of  waste.  Knowing  the  main  constituents  and  the  relative 
importance  of  each,  an  effort  was  made  to  ascertain  the  cause  and  to  sug- 
gest the  remedy. 

Difficulties  of  Studying  Waste. — The  difficulties  in  studying  waste 
in  industry  are  many.  As  an  institution,  American  industry  is  composed 
of  288,376  establishments— according  to  the  census  of  1919. 

It  is  a  fact  that  no  accepted  management  and  labor  terminology 
exists  and,  further,  few  units  of  weighing  or  measuring  the  performance 
of  industry,  or  of  any  plant  or  department  or  section  thereof  have  been 
developed  by  engineers  in  a  way  to  be  standardized,  or  to  yield  results 
and  conclusions  on  a  comparable  basis.  A  search  through  the  literature 
in  the  Engineering  Societies'  Library  showed  that  few  standards  of  thi« 
kind  were  available. 

The  impossibility  of  making  a  comprehensive  study  of  the  nearly  three 
hundred  thousand  industrial  plants  grouped  in  the  census  into  fourteen 
major  classes  is  obvious.  Neither  time  nor  funds  were  available  for 
such  a  task,  and  even  if  it  might  have  been  attempted,  it  is  doubtful  if 
the  results  would  have  been  commensurate  with  the  expenditure.  There- 
fore the  decision  was  reached  to  make  a  study  of  a  group  of  representa- 
tive plants  in  each  particular  branch  of  industry  selected.  The  lack  of 
standardized  terminology  and  of  units  and  methods  of  measurement  was 
overcome  by  preparing  a  standard  method  of  investigation  used  in  each 
branch  of  industry  and  in  the  plants  in  which  intensive  studies  were  made. 

This  means  that  the  nature  of  the  study  can  be  compared  in  point  of 
view  to  that  of  a  reconnoitering  party  for  a  proposed  railway,  or  to  the 
preliminary  assay  of  a  mine,  or  to  the  first  pencil  drawings  of  the  design 
of  a  new  machine.  The  object  in  each  case  is  to  disclose  the  main  phases 
of  the  project,  which  may  then  be  developed  and  perfected  by  the  engineers, 
through  further  study  and  elaboration,  in  whatever  detail  may  be  required. 

The  limitations  of  the  study  are  indicated  in  the  following  tabulation : 


Branch  of  Industry 

No.  of  Plants 
Investigated 

No.  Plants  Furnishing 
Additional  Information 

Building  Industry  

73 

33 

Men's  Ready-made  Clothing  Manu- 
facturing   

9 

Boot  and  Shoe  Manufacturing  
Printing.  . 

8 
g 

34 

1Q 

Metal  Trades  

16 

17 

Textile  Manufacturing  .  .  . 

13 

INTRODUCTION  5 

Each  engineer  who  made  a  field  investigation  was  thoroughly  ac- 
quainted with  the  industry  he  studied,  and  the  choice  of  the  facts  to  be 
presented  and  the  deductions  drawn  from  those  facts  were  made  by  him 
on  the  basis  of  his  expert  knowledge  and  the  composite  experience  and 
knowledge  of  the  entire  Committee. 

Plan  of  Study — Questionnaire  and  Evaluation  Sheet. — The  plan  of 
study  followed  in  each  of  these  six  branches  of  industry  was  this:  at  the 
outset  the  members  of  the  Committee  prepared  an  analysis  of  those 
factors  and  operations  in  industry  in  which  waste  might  be  expected  to 
be  discovered,  provided  a  comparison  was  made  between  average  practice 
and  the  best  known  practice.  From  this  analysis  a  trial  questionnaire 
was  prepared  to  secure  information  and  quantitative  data  to  permit  of 
comparing  the  record  of  one  plant  with  another. 

This  trial  questionnaire  was  then  used  in  making  a  study  of  one 
plant  in  each  industry.  The  results  of  these  trial  studies  were  then 
brought  together,  compared,  reviewed  by  the  Committee  and,  as  a  result, 
a  revised  questionnaire  and  an  evaluation  sheet  were  prepared,  to  be  used 
in  making  the  studies  upon  which  this  report  is  based. 

This  revised  questionnaire,  as  used  with  suggested  modifications 
based  on  the  experience  accumulated  in  its  use  in  the  field  studies,  forms  an 
important  part  of  this  report.  With  it  is  presented  the  evaluation  sheet. 
The  answers  from  each  plant  were  secured  and  judged  by  the  engineer 
who  conducted  the  field  examination. 

To  indicate  the  material  brought  into  the  hands  of  the  Committee  by 
the  use  of  the  questionnaire,  it  may  be  valuable  to  describe  briefly  the 
set  of  answers  for  one  plant  in  which  the  information  was  particularly 
well  arranged. 

In  this  set  the  answers  to  the  questions  covered  fifty-eight  single- 
spaced  typewritten  pages,  or  more  than  double  those  used  in  printing  the 
questionnaire.  This  shows  the  detail  in  which  the  replies  were  worked 
out.  Accompanying  these  answers  was  a  book  of  exhibits  comprising 
twenty -nine  classifications  of  reports,  charts,  diagrams  and  records 
presenting  detailed  and  confidential  information  in  regard  to  the  operation 
of  this  particular  plant. 

Calendar  of  the  Study. — The  statement  has  previously  been  made 
that  the  field  work  was  completed  and  the  summary  written  between 
February  7  and  June  3,  1921.  Such  rapid  progress  was  made  possible 
through  strict  adherence  to  a  previously  prepared  schedule  for  the  com- 
pletion of  each  portion  of  the  work.  This  calendar  follows: 

1921 

Jan.    12,  Committee  on  Elimination  of  Waste  named. 

Jan.  .19,  First  meeting  of  the  Committee  and  approval  of  general  plan  of  investigation. 
Feb.     7,  Approval  of  detailed  program. 


6  WASTE  IN  INDUSTRY 

1921 
Feb.  21,  Preliminary  studies  of  one  plant  in  each  industry  completed  and  report 

submitted. 

Mar.  21,  Work  to  date  reviewed  and  final  calendar  approved. 
Apr.     1,  Report  on  Textile  Manufacturing  submitted. 
Apr.  22,  Report  on  Boot  and  Shoe  Manufacturing  submitted. 
Apr.  26,  Report  on  Ready-made  Men's  Clothing  Manufacturing  submitted. 
May    2,  Report  on  Building  Industry  submitted. 
May    3,  Report  on  Printing  submitted. 
May    5,  Completion  of  Summary  Report  commenced. 
May    7,  Report  on  Metal  Trades  submitted. 
May  13,  Report  on  Sales  and  Purchasing  Policies  submitted. 
May  15,  First  draft  of  Summary  Report  completed  and  submitted  to  Committee  as  a 

whole. 
June    3,  Summary  Report  submitted  to  Executive  Board  of  American  Engineering 

Council. 

July     6,  Complete  Reports  edited  ready  for  printing. 
July  15,  Approval  of  Report  as  a  whole  by  the  Committee. 

Field  and  Statistical  Reports. — It  will  be  noticed  that  the  work  of 
planning,  including  the  making  of  the  trial  studies  and  the  revision  of 
the  questionnaire  and  evaluation  sheet  took  five  weeks  of  the  short  total. 
The  field  studies  yielded  six  reports  which  form  the  second  section  of  this 
complete  report.  Each  is  signed  by  the  name  of  the  engineer  who  super- 
vised the  work.  Five  of  the  six  present  an  evaluation  sheet  for  each 
plant  studied  and  a  composite  sheet  for  all  of  the  plants  studied.  The 
sixth  report,  the  one  on  building  trades,  presents  an  evaluation  sheet  for 
the  best  organization  studied,  and  a  composite  sheet  for  all.  In  addition 
to  this  disclosure  of  basic  facts,  each  field  report  presents  a  written  sum- 
mary of  conditions  discovered,  conclusions  drawn  and  recommendation 
and  opportunities  for  improvement. 

The  individual  reports  forming  the  third  section  of  this  complete 
report  differ  in  character  from  the  field  studies,  inasmuch  as  each  is  a 
survey  of  conditions  generally,  rather  than  a  study  of  any  one  plant  or 
branch  of  industry.  They  were  compiled  from  existing  information, 
and  each  is  signed  by  the  one  responsible  for  it.  They  therefore  support 
from  a  broader  point  of  view  many  of  the  specific  findings  presented  in 
the  field  reports  and  for  this  reason  give  a  more  general  background  for 
many  of  the  recommendations  offered. 

The  Committee  realizes  that  before  there  can  be  a  material  reduction 
in  the  sum  total  of  waste  in  industry,  much  earnest,  painstaking  work 
must  be  done.  The  solution  of  such  a  problem  is  not  one  of  hours  or 
days  but  of  years.  Fundamental  changes  in  our  economic,  financial, 
managerial  and  operating  concepts  and  practices  will  be  required.  There 
will  be  need  of  both  cooperative  and  individual  effort.  As  regards  groups, 
each  must  frankly  face  its  own  responsibility  and  meet  its  own  duties. 


INTRODUCTION  7 

Each  individual — plant  executive  or  worker — must  discover  his  own  oppor- 
tunities and  then  accept  responsibility  for  performance.  To  such  a  one, 
the  Committee  on  Elimination  of  Waste  in  Industry  suggests  that  the 
methods  developed  for  investigating  and  compiling  the  information  as 
revealed  in  this  report  be  utilized  in  individual  plants  to  show  the  way 
for  betterment  and  improvement. 


to 


CHAPTER  II 

SOURCES  AND  CAUSES  OF  WASTE 
Four  Aspects  of  Waste  in  Industry. — Waste  in  industry  is  attributable 

1.  Low  production  caused  by  faulty  management  of  materials,  plant,  equipment 

and  men. 

2.  Interrupted  production,  caused  by  idle  men,  idle  materials,  idle  plants,   idle 

equipment. 

3.  Restricted    production    intentionally    caused    by   owners,    management   or 

labor. 

4.  Lost  production  caused  by  ill  health,  physical  defects  and  industrial  acci- 

dents. 

Relative  Responsibilities. — Management l  has  the  greatest  oppor- 
tunity and  hence  responsibility  2  for  eliminating  waste  in  industry.  The 
opportunity  and  responsibility  of  labor  is  no  less  real  though  smaller  in 
degree.  The  opportunity  and  responsibility  chargeable  to  outside  con- 
tacts can  not  be  so  clearly  differentiated  or  evaluated.  The  relative 
measure  of  these  is  shown  by  the  quantities  in  the  following  table  which 
come  from  the  composite  evaluation  sheets  in  the  engineers'  field  reports. 

1  The  term  "  management "  as  used  in  this  part  of  the  report  refers  to  the  agency 
(owners  or  managers)  which  exercises  the  management  function  in  industry.     This 
function  is  thus  denned  in  a  report  approved  by  the  management  division  of  the 
American  Society  of  Mechanical  Engineers: 

Management  is  the  art  and  science  of  preparing,  organizing  and  directing 
human  effort  applied  to  control  the  forces  and  to  utilize  the  materials  of 
nature  for  the  benefit  of  man. 

2  The  "  responsibility  "  of  a  given  agency  as  here  used  does  not  mean  moral  respon- 
sibility as  ordinarily  understood,  but  only  that  responsibility  which  arises  from  the 
undeniable  fact  that  a  given  cause  of  waste  can  be  removed  only  by  a  particular  agency. 
"  We  measure  responsibility  not  by  the  thing  done  but  by  the  opportunities  which 
people  have  had  of  knowing  better  or  worse." 

8 


SOURCES  AND  CAUSES  OF  WASTE 


Responsibility 

Responsibility 

Responsibility 

Assayed  Against 

Industry 
Studied 

Assayed 
Against 
Management, 

Assayed 
Against 
Labor, 

Outside  Contacts 
(The  Public,  Trade 
Relationships,  and 

Totals, 

Other  Factors) 

Points3 

Points3 

Points3 

Points3 

Men's  Clothing  Mfg.  . 

48.33 

10.50 

4.95 

63.78 

Building  Industry  .... 

34.30 

11.30 

7.40 

53.00 

Printing  4  

36.36 

16.25 

5.00 

57.61 

Boot  and  Shoe  Mfg.  .  . 

30.25 

4.85 

5.83 

40.93 

Metal  Trades 

23.23 

2.55 

2.88 

28.66 

Textile  Mfg 

24.70 

4.70 

19.80 

49.20 

From  the  preceding  table  are  derived  percentage  values  for  each  of 
the  agencies  against  which  responsibility  is  assessed,  as  follows: 


Responsibility 

Responsibility 

Responsibility 

Assayed  Against 

Industry  Studied 

Assayed 
Against 

Assayed 
Against 

Outside  Contacts 
(The  Public,  Trade 

Management 

Labor 

Relationships,  and 

Other  Factors) 

Men's  Clothing  Mfg.  .  . 

75% 

16% 

9% 

Building  Industry  .... 

65% 

21% 

14% 

Printing  4 

63% 

28% 

9% 

Boot  and  Shoe  Mfg..  . 

73% 

11% 

16% 

Metal  Trades  

81% 

9% 

10% 

Textile  Mfg  

50% 

10% 

40% 

The  quantities  presented  above  justify  the  following  statement:  over 
50%  of  the  responsibility  for  these  wastes  can  be  placed  at  the  door  of 
management  and  less  than  25%  at  the  door  of  labor,  while  the  amount 
chargeable  to  outside  contacts  is  least  of  all.  It  must  be  recognized 
that  if  management  is  to  meet  this  responsibility  fully  it  must  have  the 
cooperation  of  labor. 

In  every  industry  studied  there  are  outstanding  examples  of  good 
management  but  the  bulk  of  the  industry  does  not  approximate  this 
standard.  In  the  clothing  industry,  for  instance,  one  plant  was  rated  by 

3  The  relative  responsibilities  have  been  evaluated  in   "  points."     A  theoretical 
total  of  100  points  represents  all  possible  waste.    As  no  plant  is  or  could  be  entirely 
wasteful  the  number  of  points  assigned  in  any  case  must  be  less  than  100. 

4  Adjusted  by  field  engineer  to  a  bas.'s  comparable  with  the  other  field  evaluations. 


10 


WASTE  IN  INDUSTRY 


the  engineers  57  points  higher  than  the  worst  one  studied  and  42  points 
better  than  the  average. 

The  following  table  gives  a  comparison  for  each  industry  studied  of 
the  total  number  of  points  assessed  as  waste  in  the  best  plant  investigated, 
compared  with  the  average  of  all  the  plants. 


Points  Assayed 

Points  Assayed 

Against  the  Best 

Against  the 

Ratio 

Industry 

Plant  Studied 

Average  of  all 
Plants  Studied 

Best  to  Average 

Points 

Points 

Men's  Clothing  Mfg.  .  . 

26.73 

63.78 

:2 

Building  Industry  .... 

30.15 

53.00 

:li 

Printing  

30.50 

57.61 

:2 

Boot  and  Shoe  Mfg.  .  . 

12.50 

40.83 

:  3 

Metal  Trades  

6.00 

28.66 

:4* 

Textile  Mfg  

28.00 

49.20 

:li 

These  tables  present  the  consensus  of  opinion  of  the  engineers  engaged 
in  field  studies  to  the  effect  that  the  average  of  management  is  much 
below  the  standards  set  by  certain  individual  executives  who  have  achieved 
notable  success. 

It  must  not  be  assumed  that  these  points  or  ratios  are  valid  in  comparing 
the  waste  in  one  industry  with  that  in  another.  They  are  useful  only 
in  making  a  comparison  of  waste  in  plants  within  the  industry  where  they 
were  assessed.  Further,  the  quantities  disclosed  by  the  evaluation  sheets 
are  only  a  part  of  the  findings  dealt  with  in  this  report. 


LOW  PRODUCTION 

Faulty  Material  Control. — In  certain  industries  the  waste  of  materials 
is  a  serious  drain  on  production — a  fact  which  is  revealed  by  a  com- 
parative study  of  plants  in  the  same  field. 

The  methods  of  control  which  are  common  in  the  shoe  industry  account 
for  the  greatest  loss  in  shoe  production,  with  the  possible  exception  of  sea- 
sonal demand  and  production.  Firms  leave  it  to  the  cutters  to  economize 
in  leather.  Where  standards  are  in  use,  waste  frequently  occurs  through 
carelessness  and  lack  of  training  of  cutters.  The  loss  from  idleness  in 
shoemaking  occasioned  by  waiting  for  work  and  material  amounts  to 
some  35%  of  the  time. 

The  average  contractor  has  no  calendar  of  operations  except  the  dates 
of  starting  and  finishing  a  job.  He  largely  regulates  deliveries  of  materials 
by  visits  to  the  job,  or  through  statements  received  from  the  job  superin- 
tendent. Haphazard  methods  of  planning  result  in  delays  for  want  of 


SOURCES  AND  CAUSES  OF  WASTE  11 

material,  or  in  burdening  the  job  by  an  over-supply  of  material.  The 
same  practice  results  in  frequent  layoffs,  causing  dissatisfaction,  the  loss 
of  good  mechanics,  and  a  high  labor  turnover. 

Still  another  waste  from  inadequate  material  control  comes  from  the 
speculative  purchasing  of  raw  materials.  In  the  clothing  industry 
gambling  in  cloth  is  common.  Fortunes  are  made  or  lost  in  this  practice, 
with  a  consequent  train  of  evils  which  affects  most  of  the  processes  of 
production,  and  raises  the  cost  of  the  product. 

Faulty  Design  Control. — The  defective  control  of  design  results  in  a 
major  waste,  since  it  prevents  standardization  of  product.  In  the  building 
trades,  for  example,  while  the  standardization  of  dwellings  and  other 
types  of  buildings  is  not  generally  practicable,  yet  certain  details  are 
entirely  capable  of  standardization.  Standardization  of  the  thickness 
of  certain  walls  might  mean  a  saving  of  some  $600  in  the  cost  of  the 
average  house.  Standardized  mill  work,  such  as  window  frames,  doors 
and  other  similar  items  would  reduce  the  cost. 

In  the  printing  trades  there  is  wide  variation  in  flat  bed  cylinder 
presses;  there  are  more  than  six  hundred  types  of  folding  machines. 
Formerly  each  type  foundry  cast  its  type  on  a  more  or  less  different  body, 
and  although  the  change  from  the  old  system  to  the  point  system  involved 
an  expenditure  of  some  $3,000,000  by  the  type  founders,  it  is  universally 
conceded  that  this  expenditure  has  been  saved  many  times  over.  Such 
an  example  points  the  way  to  further  efforts. 

There  are  approximately  6,000  brands  of  paper;  50%  of  which  are 
more  or  less  inactive.  The  duplication  of  brands  serves  no  useful  purpose 
and  ties  up  money  in  unnecessary  stock. 

As  an  example  of  the  disregard  of  standard  size,  the  Federal  Reserve 
Bank  check  will  not  cut  without  waste  from  any  of  the  regular  paper 
sizes.  A  draft  questionnaire  issued  during  the  war  was  of  such  non- 
standard  size  as  to  require  special  filing  cabinets.  The  Technical  Pub- 
lishers' Association  on  measuring  927  catalogues  found  147  different 
sizes.  A  trim  of  one-quarter  inch  on  a  6  X  9  page  is  equal  to  7%  of  the 
total  cost  of  the  paper. 

Among  current  magazines  there  are  18  variations  in  width  and  76  in 
length  of  page  or  column.  Among  trade  paper  publications  there  are 
33  variations  in  width  and  64  in  length.  Among  newspapers  there  are 
16  in  width  and  55  in  length.  These  variations  cost  the  public  not  less 
than  a  hundred  million  dollars  each  year. 

The  standardization  of  newspaper  columns  to  one  size  would  make 
possible  an  annual  saving  of  $3,000,000  to  $5,000,000  on  composition 
and  plates  alone. 

The  waste  of  time  and  money  through  duplication  of  estimates  and 
of  designs  in  the  building  trades  runs  into  the  millions  every  year. 
Frequently  the  architect  makes  a  general  design  and  for  lack  of  knowledge 


12  WASTE  IN  INDUSTRY 

of  how  to  keep  down  its  cost,  asks  all  the  bidders  to  design  the  structural 
details  in  order  to  get  their  quantities.  Thus  not  only  must  the  bidder 
include  the  cost  of  the  design  in  his  proposal,  but  he  must  allow,  in  addition, 
an  overhead  to  cover  the  cost  of  various  similar  designs  he  made  for  unsuc- 
cessful bids.  This  duplication  of  design  is  waste  for  which  owners  must 
eventually  pay. 

Another  source  of  waste  through  inadequate  design  control  comes 
through  defective  drawings,  specifications  and  tolerances. 

Faulty  Production  Control. — The  lack  of  adequate  methods  of  produc- 
tion control  is  evident  in  every  industry  studied.  It  is  one  of  the  out- 
standing weaknesses. 

In  most  tailoring  shops  there  are  no  dispatching  stations  for  recording 
the  progress  of  work  and  giving  out  work  assignments;  no  work  tickets 
and  progress  records  for  the  various  manufacturing  lots;  no  record  of 
production  either  of  the  individual  worker  or  operation;  no  record  of  the 
balance  of  work  ahead  at  each  operation  or  of  the  plant  as  a  whole.  Lots 
of  garments  introduced  at  the  beginning  of  the  process  drift  through.  In 
such  a  shop  production  is  measured  only  in  shipments  of  completed  gar- 
ments. No  record  is  made  of  the  losses  or  when  they  occur.  No 
systematic  method  of  keeping  the  operators  supplied  with  work  is  followed; 
they  either  hunt  up  work  for  themselves  or  else  the  foreman  acts  as  a 
porter.  It  is  obviously  impossible  for  the  foreman  and  his  assistants  to 
keep  an  even  flow  of  material  to  each  operator.  This  practice  results  in  a 
congestion  of  work  at  some  points;  idleness  at  others.  At  the  very 
height  of  the  season,  a  part  of  the  force  may  stand  idly  by,  waiting  for 
work.  The  lack  of  effective  planning  and  administration  in  one  large 
typical  plant  wastes  one-fifth  of  the  worker's  time. 

Examples  of  avoidable  waste  such  as  the  following  are  fairly 
common: 

A  shoe  factory  having  a  capacity  of  2400  pairs  of  shoes  a  day  could 
turn  out  for  a  considerable  period  only  1900  pairs  because  of  shortage  of 
needed  racks.  Another  factory  had  50,000  pairs  of  shoes  tied  up  in  the 
fitting  room  instead  of  the  normal  15,000  because  of  congestion  of  opera- 
tions. In  another  case  a  factory  producing  700  pairs  of  shoes  a  day  had 
36,000  pairs  in  its  fitting  room,  or  ten  times  the  normal  supply.  An 
entire  factory  was  held  up  for  several  days  waiting  for  leather  heels. 

From  shop  records  it  is  found  that  the  average  loss  in  clothing  factor- 
ies during  running  time,  not  including  shut  downs,  is  between  30  and  35%. 
If  we  call  80%  running  time  the  maximum  readily  attainable,  this  means 
a  possible  increase  of  nearly  20%  in  productive  capacity,  and  a  similar 
increase  in  plant  capacity. 

It  is  found  that  at  least  ten  hours  per  week  per  man  is  thrown  away 
on  energy-wasting  and  time-wasting  work  resulting  from  lack  of  shop 


SOURCES  AND  CAUSES  OF  WASTE  13 

methods,  while  an  additional  two  or  three  hours  per  man  per  week  are 
wasted  in  unnecessary  work. 

Fixing  the  value  of  annual  output  in  the  men's  ready-made  clothing 
industry  at  $600,000,000  it  should  be  relatively  easy  to  save  three-quarters 
of  a  million  dollars  a  day,  an  increase  of  40%  in  effectiveness. 

The  lack  of  production  control  is  not  a  question  of  large  versus  small 
plants.  In  the  metal  trades,  for  example,  the  engineer  declares  that 
the  size  of  the  plant  does  not  necessarily  determine  its  efficiency,  for  some 
of  the  large  plants  as  well  as  some  small  ones  show  a  large  waste  factor. 

Lack  of  Cost  Control. — The  majority  of  the  industrial  plants  studied 
lack  a  knowledge  of  costs  and  have  no  cost  control.  Therefore  there  is 
no  adequate  method  of  judging  fairly  and  accurately  when  improvements 
are  needed  and  when  waste  is  occurring.  Not  having  the  facts  prevents 
prompt  correction  of  defects.  The  above  conditions  are  disclosed,  for 
example,  in  the  report  on  the  metal  trades.  A  survey  of  the  printing  plants 
in  New  York  City  made  by  the  United  Typotheta?  showed  that : 

'    56  plants  use  standard  cost  system. 

'  187  plants  with  no  cost  system,  but  with  a  knowledge  of  all  general  costs. 
'  741  plants  with  no  cost  system  and  incomplete  knowledge  of  all  general  costs. 
'  554  plants  with  no  cost  system  and  incomplete  knowledge  of  general  costs. 
'  The  first  two  groups  made  money,  the  last  two  lost  money  in  1919." 

Lack  of  Research. — While  certain  industries  are  ahead  of  the  rest  in 
plant  research,  the  need  for  more  intensive  research  activity  is  apparent 
in  every  industry.  One  industry  which  is  backward  in  this  respect  is 
clothing.  In  the  majority  of  men's  clothing  plants  nothing  approximating 
research  is  practiced  to  improve  materials,  processes,  equipment  or  product. 
The  assertion  probably  will  not  be  challenged  that  there  is  not  a  single 
individual  throughout  the  entire  industry  who  is  solely  engaged  in  research 
and  is  thus  without  operating  duties. 

In  the  shoe  industry  there  is  lack  of  information  as  to  market  demands 
in  this  country  and  abroad.  In  all  the  leather  industries  there  is  need  for 
scientific  research  to  aid  in  predicting  the  kinds  and  quantities  of  leather 
required. 

Faulty  Labor  Control. — With  perhaps  two  or  three  exceptions,  shoe 
shops  have  no  departments  maintaining  modern  personnel  relations  with 
the  employees.  Thus  the  worker  has  no  unbiased  means  of  approach  to 
his  employer,  and  the  employer  lacks  the  means  for  treating  with  his  own 
employees.  Among  the  plants  studied,  only  a  few  have  effective  employ- 
ment methods.  Fewer  keep  a  record  and  make  an  analysis  of  the  reason 
why  men  quit.  Men  are  usually  discharged  or  quit  work  without  any 
executive  knowing  the  reason  why.  No  steps  are  taken  to  correct  the 
conditions  that  bring  about  so  many  expensive  separations  from  the 
working  force. 


14  WASTE  IN  INDUSTRY 

A  high  labor  turnover  is  a  rough  index  of  one  of  the  common  wastes 
resulting  from  inadequate  labor  management.  No  facts  are  available  to 
show  the  extent  of  labor  turnover  as  an  unavoidable  element  in  industrial 
waste.  The  accessible  data  are  not  comparable  for  no  common  method  of 
computation  and  analysis  has  been  followed.  However,  this  is  an  important 
factor  of  labor  waste  because  of  its  magnitude  and  because  of  the 
expense  involved  in  training  new  workers  to  take  the  place  of  those 
who  leave. 

In  the  shoe  industry  the  cost  of  training  an  inexperienced  man  for 
cutting  upper  leather  in  a  well  managed  shop  is  $576;  for  a  semi- 
experienced  man,  $450;  and  to  install  an  experienced  man  in  a  differ- 
ent shop  costs  $50.  For  the  average  shop  these  figures  are  unquestion- 
ably low. 

The  average  labor  turnover  for  the  year  1920  in  the  metal  trades 
plants  covered  (wherever  record  were  kept,  which  was  the  case  in  less 
than  half  of  the  plants),  was  160% — figured  in  most  cases  as  the  ratio 
between  the  number  of  "  separations "  and  the  average  number  of 
employees  on  the  payroll.  The  highest  turnover  was  366%. 

The  building  trades  have  given  little  consideration  to  the  subject  of 
labor  turnover.  In  construction  work  it  is  particularly  difficult  to  estimate 
the  extent,  because  the  actual  percentage  of  turnover  constantly  varies  as 
the  building  progresses  and  the  number  of  men  is  increased  and  later 
decreased.  Men  quit  for  such  reasons  as  the  type  of  work  they  are  to 
perform,  the  risk  involved  in  the  particular  work,  and  unfair  treatment 
by  foremen.  They  are  discharged  for  lack  of  work,  incompetence,  lazi- 
ness, causing  trouble,  or  sometimes  because  there  are  better  men  avail- 
able. The  labor  turnover  and  service  records  of  typical  contractors  show 
large  losses. 

Employment  managers  are  rarely  employed  even  upon  the  largest 
jobs,  and  "  hiring  and  firing  "  is  at  the  will  of  the  foreman  or  superin- 
tendent. 

Another  fault  in  labor  control  is  improper  or  inadequate  rate  setting. 
In  negotiations  and  controversies  between  employer  and  operator  in  the 
shoe  industry,  what  stands  out  is  the  lack  of  knowledge  of  facts  which 
can  be  used  as  a  basis  for  setting  rates. 

In  a  shoe  factory,  for  example,  with  the  adoption  of  a  new  style  new 
rates  have  to  be  set.  The  operatives  through  their  agent  make  a  guess 
at  the  time  demanded  and  therefore  the  proper  rate  to  set.  The  manu- 
facturer makes  a  similar  guess.  His  estimate  is  usually  lower  than  that 
of  the  operatives.  A  compromise  is  made,  based  not  on  facts  but  on  the 
argumentative  ability  of  the  two  parties.  If  the  rate  is  set  too  high,  it 
means  unequal  payments  to  the  workers  or  else  cutting  rates  later  on. 
This  policy  is  responsible  for  much  of  the  friction  in  the  shoe  industry. 


SOURCES  AND  CAUSES  OF  WASTE  15 

Ineffective  Workmanship. — Still  another  loss  resulting  in  low  produc- 
tion arises  from  inefficient  workmanship;  for  much  of  this  management 
is  responsible  through  failure  to  provide  opportunities  for  education  or 
special  training.  Management,  however,  cannot  do  more  than  pro- 
vide these  facilities,  and  experience  has  shown  that  it  is  difficult  to  interest 
workmen  in  training  courses  which  are  designed  to  increase  effectiveness. 
Further,  much  ineffective  workmanship  arises  from  lack  of  interest  in  work 
or  lack  of  pride  in  good  workmanship.  The  field  reports  give  no  evalua- 
tion of  spoilage,  which  is  one  of  the  measures  of  this  form  of  waste. 

Faulty  Sales  Policies. — The  cancellation  of  orders  is  a  condition 
peculiar  to  certain  industries.  It  is  especially  acute  in  the  clothing  indus- 
try. Purchasers  buying  on  long-time  contracts  return  unsold  goods 
at  the  end  of  the  season,  and  claim  and  receive  credit.  In  normal  seasons 
cancellations  have  ranged  from  3%  to  14%,  and  returns  from  5%  to  11% 
in  the  average  shop.  In  abnormal  years,  like  1920,  cancellations  have 
reached  33%  and  returns  18%. 

The  evil  is  general  in  the  clothing  and  allied  industries.  It  is  common 
practice  for  manufacturers  to  oversell  the  dealers  and  oversell  their  own 
manufacturing  capacity.  They  make  and  deliver  what  they  can,  and 
cancel  the  rest  of  their  orders.  The  manufacturers  follow  the  same  bad 
custom  in  dealing  with  the  textile  mills. 

INTERRUPTED  PRODUCTION 

Idle  Men. — (1)  Minimum  Unemployment. — The  amount  of  idleness 
or  unemployment  in  industry  can  only  be  evaluated  through  rough 
estimates.  There  is  no  national  machinery  for  collecting  the  facts. 

But  in  the  best  years,  even  the  phenomenal  years  of  1917  and  1918 
at  the  climax  of  war-time  industrial  activities,  when  plants  were  working 
to  capacity  and  when  unemployment  reached  its  lowest  point  in  twenty 
years,  there  was  a  margin  of  unemployment  amounting  to  more  than  a 
million  men.  This  margin  is  fairly  permanent;  seemingly  one  or  more 
wage  earners  out  of  every  forty  are  always  out  of  work. 

This  unemployment  means  for  the  worker  a  loss  in  wages,  for  industry 
increased  overhead  due  to  idle  equipment  and  idle  materials,  and  for  the 
public  a  lessened  purchasing  power,  with  all  its  attendant  evils. 

(2)  Unemployment  Caused  by  Industrial  Depressions. — During  periods 
of  industrial  and  business  depressions,  unemployment  reaches  its  greatest 
amount.  Such  depressions  appear  more  or  less  regularly  at  seven-  or  ten- 
year  periods  and  each  brings  its  increase  in  unemployment  and  wastage 
of  the  productive  capacity  of  industry. 

In  January,  1921,  a  nation-wide  survey  of  employment  made  by  the 
U.  S.  Employment  Service  of  the  Department  of  Labor  showed  that  there 


16  WASTE  IN  INDUSTRY 

were  6,070,648  workers  then  employed  in  industry  as  compared  with 
9,402,000  in  January  of  1920,  a  decrease  of  3,331,352  or  approximately 
35.5%.  This  survey  covered  35  states  and  182  industrial  cities  and  cen- 
ters and  may  be  considered  as  fairly  reflecting  conditions  at  that  time. 

(3)  Intermittent    Unemployment. — In  addition  to  minimum  and  cli- 
macteric unemployment,  many  essential  industries  show  a  high  unem- 
ployment or  idleness  once  a  year  or  oftener.     Practically  all  industries 
are  in  a  sense  seasonal. 

To  present  a  few  examples:  The  clothing  worker  is  idle  about  31% 
of  the  year;  the  average  shoe-maker  spends  only  65%  of  his  time  at  work; 
the  building  trade  workman  is  employed  only  about  190  days  in  the  year 
or  approximately  62%  of  his  time;  the  textile  industry  seemingly  has 
regular  intervals  of  slack  time;  during  the  past  30  years  bituminous  coal 
miners  were  idle  an  average  of  93  possible  working  days  per  year. 

During  the  exceptional  year  of  1919,  in  the  paper  box  industry  4,311 
employees  in  77  establishments  averaged  90%  of  full  time;  in  the  women's 
clothing  industry  6,772  women  workers  employed  in  157  establishments 
averaged  91%;  in  the  confectionery  industry  12,152  workers  in  101 
establishments  averaged  87%;  and  in  the  overall  industry  6,546  workers 
in  129  establishments  averaged  87%  of  full  time.  In  the  brick,  chemical 
and  glass  industries  the  percentage  of  full  time  worked  was  85,  84  and  87, 
respectively.  In  most  years  the  percentage  of  lost  days  is  much 
larger. 

Not  only  does  intermittent  unemployment  reduce  the  productive 
capacity  of  the  industry  in  which  it  exists,  but  it  brings  other  wastes.  One 
consequence  is  a  concrete  but  fallacious  industrial  philosophy,  the  "  make 
work  "  or  "  lump  of  work  "  theory.  This  is  the  belief  that  there  is  only 
so  much  work  to  be  done  and  that  the  sensible  course  of  action  is  to 
retard  production  to  make  employment  last  throughout  the  year,  or  to 
uphold  prices. 

(4)  Unemployment   Due   to    Labor   Disturbances. — Another   form   of 
unemployment  comes  from  open  conflict  between  management  and  labor. 
Here  it  should  be  said  that  in  the  past,  at  least,  the  amount  of  waste  from 
the  general  run  of  strikes  and  lockouts  through  loss  of  wages  and  curtail- 
ment of  production  has  been  less  than  is  popularly  supposed.     That  these 
disturbances  do  produce  unemployment  is  true,  but  in  the  industries 
studied  they  do  not  of  themselves  appear  to  constitute  a  major  source 
of  reduced  production.     The  ramifications  of  such  strikes  with  their 
attendant  and  indirect  losses  the  Committee  has  been  unable  to  trace. 

Such  labor  disturbances  are  either  strikes  or  lockouts.  As  it  is  difficult 
to  distinguish  between  them  and  the  industrial  effects  are  practically  the 
same,  it  has  seemed  best  in  this  summary  to  deal  only  with  strikes. 

More  than  one-half  of  all  the  strikes  that  occurred  between  1881  and 


SOURCES  AND  CAUSES  OF  WASTE  17 

1905  l  and  more  than  one-half  of  the  employees  thrown  out  of  work  were 
in  highly  irregular  or  distinctly  seasonal  occupations. 

Since  most  strikes  occur  in  seasonal  employments,  it  can  be  deduced 
that  output  is  not  necessarily  penalized,  for  it  is  often  possible  to  make  up 
the  losses  incurred  by  strikes  through  increased  production  at  other  times. 

More  coal  was  mined  in  1910  than  in  1911,  although  the  former  year 
witnessed  many  protracted  strikes  involving  large  numbers  of  employees. 
The  year  1912,  with  47%  of  the  entire  labor  force  out  on  strike  and  with 
an  average  loss  per  man  of  40  days,  showed  an  increased  output  of  coal 
per  man  per  day  and  per  year,  and  six  days  more  employment  than  in 
1911,  which  was  relatively  strikeless. 

The  total  production  was  also  more.  Low  production  in  1914  and  1915 
was  due  to  general  business  depression  caused  by  the  World  War  rather 
than  to  strikes. 

In  New  York  State  in  1916  two  days  were  lost  per  capita  per  year  by 
those  classed  as  gainfully  employed,  because  of  strikes.  This  was  a  loss 
only  one-fifth  as  serious  as  average  time  lost  through  illness.  In  the 
same  state  in  1918  about  32%  of  the  time  lost  from  strikes  and  lockouts 
was  in  the  building  and  clothing  industries. 

In  addition  to  the  direct  loss  of  time,  however,  there  is  a  loss  incurred 
through  retarded  production  previous  to  and  immediately  following 
strikes. 

Wages  and  hours  have  always  been  the  chief  cause  of  strikes.  There 
has  been  a  marked  falling  off  in  the  relative  number  of  strikes  for  this 
cause  in  recent  years  as  compared  with  1898-1905. 

Jurisdiction al  disputes,  that  is,  strikes  by  the  members  of  one  trade 
against  the  performance  of  work  which  they  regard  as  belonging  to  their 
craft  by  members  of  some  other  craft  or  trade,  are  relatively  unimportant. 
The  Bureau  of  Labor  Statistics  reports  there  were  19  such  strikes  in  1916, 
21  in  1917,  16  in  1918,  and  15  in  1919.  However,  there  are  disputes 
constantly  arising  which,  while  they  do  not  lead  to  formal  strikes,  work 
demoralization  and  are  a  fertile  source  of  inefficient  use  of  labor. 

In  the  building  trades,  jurisdictional  quarrels  represent  about  one- 
quarter  of  the  total  number  of  strikes. 

Idle  Material. — The  waste  of  idle  material  through  deterioration, 
obsolescence  and  carrying  charges  is  large,  particularly  where  there  are 
great  inventories  of  both  raw  material  and  finished  goods.  Unbalanced 
production  is  another  notable  cause  of  idle  materials  and  consequent  waste. 

Idle  Plants  and  Equipment. — Unsound  production  policies  result  in 
wasteful  over-equipment. 

Clothing  factories  are  built  45%  larger  than  is  necessary;    printing 

1  There  are  complete  statistics  for  these  years.  Since  1906  the  Department  of 
Labor  has  had  no  authority  "  to  require  reports  relative  to  strikes  from  anyone." 


18  WASTE  IN  INDUSTRY 

establishments  are  from  50%  to  150%  overequipped;  the  shoe  industry 
has  a  capacity  of  1,750,000  pairs  of  shoes  a  day,  and  produces  little  more 
than  half  that  number;  throughout  the  metal  trades,  standardization  of 
products  would  permit  of  large  reductions  in  plant  and  equipment. 

Standardization  of  machine  sizes  would  make  possible  the  use  of  one 
machine  for  a  greater  variety  of  different  jobs.  The  printing  industry 
illustrates  this  point  also.  A  common  sight  in  any  large  printing  establish- 
ment is  expensive  machines  covered  up  and  out  of  use,  or  inefficiently 
used  for  purposes  other  than  that  for  which  they  were  built.  A  printer 
secures  a  contract  and  buys  a  machine  to  do  the  work  economically. 
When  the  work  comes  up  for  contract  next  time,  if  some  other  printer 
secures  it,  it  invariably  means  another  special  machine.  One  concern 
paid  $17,000  for  a  special  press  for  printing  a  trading  stamp.  On  losing 
this  job,  the  press  was  scrapped,  and  later  sold  for  $2,000.  The  contract 
in  the  meantime  had  been  awarded  to  three  other  printers  in  succession, 
and  each  in  turn  had  purchased  a  new  press  which  he  had  to  scrap  or  use 
disadvantageously  at  the  expiration  of  his  contract.  Similar  practices 
are  common  in  other  industries. 

It  has  not  been  possible  in  this  assay  to  estimate  the  amount  of  idle 
equipment,  nor  the  accompanying  waste  through  maintenance  and 
depreciation  charges. 

RESTRICTED  PRODUCTION 

Production  Restricted  by  Owners  and  Management. — Some  of  the 
evils  of  restricted  production  are  chargeable  to  owners  and  management. 
In  the  building  trades,  contractors,  builders  and  supply  dealers  have 
restricted  production  by  maintaining  high  prices,  collusion  in  bidding  and 
unfair  practices.  At  times  there  has  been  collusion  between  employers 
and  labor,  tending  to  raise  prices  unduly.  The  waste  from  these  causes 
cannot  be  measured  in  this  study. 

By  Labor. — Restrictions  of  individual  output  for  which  workers  are 
responsible  are  susceptible  of  measurement.  They  are  of  two  kinds. 
On  the  one  hand,  when  workers  are  scarce  the  less  conscientious  workers 
become  independent  and  slacken  speed,  whereas  when  workers  are 
plentiful,  they  work  with  greater  diligence  and  care  for  fear  of  unem- 
ployment. On  the  other  hand,  the  dread  of  unemployment  is  so  pro- 
nounced that  employees  engaged  in  seasonal  enterprises  frequently 
restrict  production  in  order  to  make  employment  last  longer;  some 
workers,  moreover,  through  consideration  for  their  fellow  employees  limit 
production  to  provide  work  for  them,  a  practice  which  ultimately  results 
in  an  economic  loss. 

Important  restrictions  of  output  by  employees  can  only  result  from 


SOURCES  AND  CAUSES  OF  WASTE  19 

collective  action.  In  the  building  trades,  for  instance,  some  painters' 
unions  do  not  permit  of  the  use  of  a  brush  wider  than  4|"  for  oil  paint, 
although  for  certain  classes  of  work  a  wider  brush  is  more  economical. 
Plumbers'  and  steamfitters'  unions  prohibit  the  use  of  bicycles  and  vehicles 
of  all  sorts  during  working  hours.  Members  of  those  unions  in  some 
sections  of  the  country  demand  that  all  pipe  up  to  2"  shall  be  cut  and 
threaded  on  the  job. 

The  tools  of  the  engineer  are  standard  weights  and  measures,  scien- 
tifically established.  He  cannot  serve  industry  unless  he  can  set 
standards  for  production  and  can  measure  work  performed.  Many 
unions  now  oppose  the  use  of  such  standards.  Practically  all  of  the  print- 
ing unions  oppose  these  devices.  The  rules  of  the  craft  unions  in  the 
building  trades  also  object  to  many  labor  saving  devices,  and  thus  con- 
tribute to  waste  in  that  industry. 

The  restriction  of  the  number  of  apprentices  is  a  common  rule.  The 
engineer  in  the  building  trade  notes  that  restriction  of  apprentices  in 
many  cases  seems  extreme  and  unfair. 

Unions  are  charged  with  restricting  the  use  of  machinery.  Painters' 
unions  refuse  to  allow  their  men  to  work  on  a  job  where  a  spraying  machine 
is  being  used,  making  claim  that  the  use  of  the  machine  is  injurious  to  the 
health  of  the  workman.  Some  labor  organizations  of  minor  importance, 
such  as  windowglass  and  stonecutters'  unions,  may  also  be  mentioned  as 
opposed  to  the  introduction  of  machinery. 

All  such  restrictions,  so  far  as  they  prohibit  the  use  of  the  best  and 
most  efficient  machines,  constitute  limitations  of  output.  The  actions  of 
most  unions,  however,  are  confined  to  the  restriction  of  the  use  of  machin- 
ery rather  than  its  prohibition 

The  rule  requiring  that  members  of  one  craft  union  shall  not  encroach 
upon  the  work  of  another  results  in  large  waste  and  little  benefits. 
Unions  frequently  require  three  or  four  skilled  employees  to  perform 
various  operations  on  a  plain  job  which  a  single  worker  could  satisfac- 
torily do  by  himself.  Union  carpenters  are  forbidden  to  lay  bricks, 
union  plumbers  are  forbidden  to  do  carpentering  work,  and  the  like. 

A  union  rule  in  newspaper  printing  requires  that  all  advertising  matter 
coming  into  the  plant  in  electrotype  form  must  be  reset  by  the  compositors. 
This  useless  work  is  sometimes  done  weeks  after  the  advertisement  has 
appeared. 

In  as  simple  a  matter  as  printing  the  names  of  individual  firms  on 
catalogue  covers,  where  the  imprints  are  all  set  up  in  slugs,  after  each 
imprint  is  run  off,  the  pressroom  workers  have  been  known  to  insist  that 
a  compositor  be  brought  from  the  composing  room  to  make  the  change 
to  the  next  imprint,  while  they  stand  idly  by.  In  a  case  of  this  kind, 
where  the  runs  are  short,  it  amounts  practically  to  requiring  two  persons 


20  WASTE  IN  INDUSTRY 

to  do  the  work  of  one.  Similarly  with  paper  handlers,  sheet  straighteners, 
feeders  and  pressmen,  it  is  not  at  all  uncommon  to  be  forced  to  have  men 
from  several  different  unions  participate  in  a  simple  piece  of  work  which 
could  be  performed  more  easily  and  economically  by  one  person.  In  the 
printing  industry  a  somewhat  different  situation  is  found,  in  the  case  of 
pressmen,  where  the  union  sometimes  requires  four  men  to  operate  a 
machine,  although  three  would  suffice. 

The  following  instances  further  illustrate  restriction  of  output  through 
divisions  of  labor: 

Carpenters'  helpers  are  prohibited  from  using  carpenter  tools,  requiring 
carpenters  to  do  such  work  as  stripping  forms  from  concrete.  Experience 
shows  that  helpers  can  do  this  more  economically  and  as  well. 

Brick  masons  insist  on  washing  down  and  pointing  brick  work  when 
laborers  could  do  it  more  economically. 

Structural  steel  workers  under  certain  rules  must  bring  the  steel  from 
the  unloading  point  to  the  building  site,  thus  doing  laborers'  work  at  high 
cost. 

Structural  steel  men  place  reinforcing  steel  for  concrete,  whereas 
experience  has  proved  conclusively  that  properly  trained  laborers  can 
do  it  to  as  good  advantage,  and  at  greatly  lowered  cost. 

Structural  steel  men  claim  the  rigging  on  a  job.  In  operating  a  small 
derrick  used  in  footing  excavation,  the  bucket  cable  had  to  be  guided  by 
hand  and  the  hoisting  engineer  signalled  by  a  skilled  iron  worker. 

Hoisting  engineers  claim  the  right  to  run  ah1  types  of  engines,  including 
small  gas-driven  pumps  which  require  no  skill.  On  one  job  a  contractor 
had  to  hire  a  union  engineer  at  $8.00  per  day  simply  to  start  a  pump  in 
the  morning,  oil  it  occasionally,  and  stop  it  at  night. 

Union  rules  generally  require  distribution  of  plumbing  materials  above 
the  first  floor  by  union  plumbers. 

LOST  PRODUCTION 

From  111  Health. — A  report  on  national  vitality  prepared  in  1909  for 
the  National  Conservation  Commission,  appointed  by  President  Roose- 
velt, estimated  that  there  were  then  about  3,000,000  persons  seriously 
ill  at  all  times  in  the  United  States.  This  meant  an  average  annual  loss 
per  person  of  13  days  owing  to  illness.  It  was  estimated  that  42%  of 
this  illness  was  preventable,  and  that  such  prevention  would  extend 
the  average  life  by  over  15  years. 

Since  that  report  was  issued,  an  apparent  reduction  in  illness  has  been 
accomplished;  so  that  to-day  an  estimate  of  between  eight  and  nine  days 
working  time  lost  through  illness  is  probably  near  the  fact. 

In  discussing  public  health  conditions  there  is  no  clear  distinction 


SOURCES  AND  CAUSES  OF  WASTE  21 

between  the  standing  of  the  42,000,000  persons  classed  as  gainfully 
employed  in  the  United  States  and  those  specifically  engaged  in  industry. 
The  42,000,000  men  and  women  gainfully  employed  probably  lose  on  an 
average  more  than  eight  days  each  annually  from  illness  disabilities, 
including  non-industrial  accidents — a  total  of  350,000,000  days.  Of  the 
500,000  workers  who  die  each  year,  it  is  probable  that  the  death  of  at  least 
one-half  is  postponable,  by  proper  medical  supervision,  periodic  medical 
examination,  health  education  and  community  hygiene. 

Assuming  that  the  average  life  has,  aside  from  all  spiritual  and  human 
values,  an  economic  value  to  industry  of  not  less  than  $5,000,  and  assuming 
that  the  special  diet,  care,  and  medical  attention  required  by  a  man 
chronically  ill  costs  $3  per  day,  it  has  been  estimated  that  the  economic 
loss  from  preventable  disease  and  death  is  $1,800,000,000  among  those 
classed  as  gainfully  employed — or  over  $700,000,000  among  industrial 
workers  in  the  more  limited  meaning  of  the  term. 

The  preceding  figures  are  derived  from  studies  of  individual  groups, 
from  insurance  experience,  from  census  records,  from  draft  records,  and 
there  is  experiential  basis  for  the  statement  that  this  loss  could  be  materi- 
ally reduced  and  leave  an  economic  balance  in  the  working  population 
alone  over  and  above  the  cost  of  prevention  of  at  least  $1,000,000,000 
a  year. 

Tuberculosis  is  the  most  important  disease  among  industrial  workers, 
two  or  three  deaths  per  1,000  per  annum  occurring  at  the  working  ages. 
It  is  estimated  that  3  per  cent  of  the  wage  earners,  or  about  1,250,000 
lives  are  affected.  The  economic  loss  from  tuberculosis  death  rate  as 
affecting  the  working  population  is  $500,000,000  annually.  Pneumonia, 
influenza  and  typhoid  fever  are  the  most  important  communicable  diseases 
among  adults.  Influenza  and  pneumonia,  in  non-epidemic  years,  take 
about  35,000  lives  in  the  working  ages,  and  account  for  at  least  350,000 
cases  of  illness.  Typhoid  fills  close  to  150,000  sick  beds  annually  and 
takes  15,000  lives,  mostly  in  the  working  ages. 

In  a  large  industrial  area  hookworm  infection  was  present  among  at 
least  5%  of  the  laboring  population. 

Malaria  is  so  seldom  a  direct  cause  of  death  that  it  is  difficult  to 
estimate  its  extent  and  influence.  It  is  responsible  for  much  sub- 
standard health,  and  probably  affects  1,500,000  people  annually,  covering 
27,000,000  days  absence. 

It  may  be  roughly  estimated  that  1,500,000  workers  are  infected  with 
venereal  disease.  Judging  by  the  draft  figures,  5.6%  would  be  an  outside 
estimate  for  ages  21  to  31  in  the  general  mixed  population,  white  and 
colored,  for  all  venereal  infections.  It  has  been  estimated  that  about 
60%  of  the  infection  occurs  in  this  age  period.  Another  study,  it  should 
be  said,  found  less  than  1%  of  syphilis  in  industry  and  about  3%  in  mixed 


22  WASTE  IN  INDUSTRY 

population.  The  Mayo  Clinic  found  4.6%  of  syphilis  in  mixed  classes 
and  10%  among  railway  men. 

There  are  more  than  6,000,000  workers  with  organic  diseases  resulting 
mostly  from  infection. 

Defective  Vision  and  Defective  Teeth. — Special  attention  has  been 
given  in  recent  years  to  the  question  of  defective  vision  and  to  that  of 
defective  teeth.  It  is  estimated  that  25,000,000  workers  have  defective 
vision  requiring  correction.  It  is  the  experience  of  a  number  of  plant 
executives  that  the  correction  of  sub-standard  vision  brings  increased 
quality  and  quantity  of  production,  sufficient  to  pay  for  the  cost. 

A  very  large  proportion  of  workers  have  defective  teeth  and  mouth 
infection  and  other  serious  physical  defects  which  reduces  their  effective- 
ness. Sub-standard  conditions  of  health  and  physical  deficiencies  should 
be  studied  as  a  cause  of  fatigue  in  industry. 

From  Industrial  Accidents. — In  1919  there  occurred  in  industry  about 
23,000  fatal  accidents,  about  575,000  non-fatal  accidents  causing  four 
weeks  or  more  of  disability  and  3,000,000  accidents  causing  at  least  one 
day's  disability.  The  figures  for  1918  were  about  13%  higher. 

The  time  lost  is  estimated  to  be  296,000,000  days.  Allowing  for  an 
average  wage  of  $4  per  day  during  the  time  actually  lost,  adding  an 
estimate  for  impaired  earning  power  because  of  disability  or  death,  but 
subtracting  the  subsistence  of  those  killed,  this  gives  an  economic  loss  to 
the  country  of  about  $853,000,000  for  the  year  1919. 

This  is  not  the  whole  loss  chargeable  to  accidents. 

In  one  state  (Wisconsin)  the  costs  to  employers  for  medical  and  sur- 
gical aid  and  hospitals'  bills,  and  the  overhead  expenses  of  insurance, 
equaled  86%  of  the  actual  compensation  paid  to  workmen.  The  compen- 
sation paid  the  workmen  was  about  22%  of  the  total  actual  and  pros- 
pective wage  loss.  Records  from  other  states  indicate  that  this  is  probably 
typical.  On  this  basis  the  total  direct  cost  of  industrial  accidents  in  the 
United  States  in  1919,  including  medical  aid  and  insurance  overhead, 
was  not  less  than  $1,014,000,000.  Of  this  $349,000,000  was  borne  by 
employers  and  $665,000,000  by  employees  and  their  dependents. 

These  approximate  figures  are  low  because  they  do  not  include  medical 
expenses  incurred  by  workmen  and  not  paid  by  the  employer  or  insurance 
company;  overhead  cost  or  personal  accident  insurance  carried  by  work- 
men; cost  of  training  new  men  to  take  the  place  of  those  injured;  employ- 
ment and  welfare  department  expense  in  keeping  track  of  injured  work- 
men and  their  families.  The  addition  of  these  items  would  bring  the  total 
well  over  a  billion  dollars  per  year. 

In  this  calculation  no  account  has  been  taken  of  the  indirect  loss  of 
production  due  to  the  stoppage  or  slowing  up  of  work  when  an  accident 
occurs.  This  affects  not  only  the  operation  at  which  the  man  is  injured, 


SOURCES  AND  CAUSES  OF  WASTE  23 

but  associated  operations  as  well.  It  applies  also  to  "  near-accidents  " 
in  which  no  personal  injury  occurs. 

Experience  indicates,  and  authorities  agree,  that  75%  of  these  losses 
could  be  avoided,  with  a  saving  in  direct,  clearly  ascertained  losses  alone 
of  a  quarter  of  a  billion  dollars  per  year  to  employers,  and  half  a  billion  to 
employees. 

In  the  State  of  Massachusetts,  where  about  150,000  mechanics  are 
employed  in  the  building  trades,  for  the  year  ending  July  1,  1920,  there 
were  5,032  tabulated  accidents  representing  a  loss  of  time  at  485,486  days. 

In  New  York  State  during  the  four  years  1910  to  1914  more  fatalities 
due  to  accidents  occurred  in  building  and  construction  work  than  in  all  the 
factories  put  together,  although  about  four  times  as  many  people  are  em- 
ployed in  the  factories  as  are  employed  in  building  and  construction  work. 

It  may  be  noted  that  whereas  accidents  in  some  construction  trades 
involve  losses  up  to  10%  of  the  labor  cost,  certain  contractors  have  found 
it  possible  to  cut  their  accidents  in  half  through  special  efforts. 

Insurance  rates  in  building  construction  are  higher  than  in  any  other 
industry.  Rates  are  dependent  on  the  cost  of  the  accidents  which  actu- 
ally occur.  Therefore,  any  reduction  in  accidents  reduces  the  insurance 
paid. 

Approximately  $30,000,000  is  paid  to  insurance  companies  each  year 
by  builders  alone  for  compensation  and  liability  insurance.  This  figure 
by  no  means  represents  the  total  loss.  While  state  laws  vary,  in  general 
an  injured  workman  must  be  disabled  some  seven  days  to  two  weeks  before 
receiving  an  award,  and  then  receives  as  compensation  only  a  part  of  his 
average  daily  earnings.  The  loss  to  the  contractor  is  less  tangible,  but 
where  a  man  is  out,  a  new  one  must  be  broken  into  a  job  with  loss  of  time 
and  frequently  loss  of  material.  In  case  of  serious  accident,  also,  there 
is  stoppage  of  work  and  extensive  loss  of  time  of  the  entire  force.  In  the 
opinion  of  one  of  the  best  authorities  in  the  country  the  actual  cost  of 
insurance  represents  not  more  than  25%  of  the  total  economic  loss, 
which,  if  correct,  would  bring  the  total  cost  due  to  accidents  in  the  build- 
ing industry  to  $120,000,000  per  year. 

An  official  of  a  large  insurance  company  believes  that  by  proper  safety 
measures,  the  waste  due  to  accident  in  the  building  industry  can  be  reduced 
75  to  80%  in  two  to  five  years  of  earnest  effort,  and  that  construction  labor 
cost  can  be  cut  3%  by  these  measures.  Another  official  estimates,  from 
actual  accomplishments  in  safety  measures,  that  a  total  of  more  than 
12,000,000  days  a  year  could  be  saved  the  industry  by  the  application  of 
safety  methods.  In  certain  industries,  on  the  other  hand,  such  as  boot 
and  shoe  manufacturing,  accidents  are  insignificant. 


CHAPTER  III 

RECOMMENDATIONS  FOR  THE  ELIMINATION  OF 
WASTE  IN  INDUSTRY 

Opportunities  and  Responsibilities. — In  preparing  this  third  part 
of  the  summary,  the  Committee  has  endeavored  to  interpret  responsibility 
in  terms  of  what  might  be  done  to  eliminate  waste  in  industry.  The 
policies  and  methods  recommended  are  such  as  are  already  in  successful 
use  in  the  industries  and  plants  investigated.  The  opportunities  out- 
lined show  how  support  may  be  given  to  those  efforts  and  what  are  the 
agencies  especially  responsible  for  elimination  of  waste  in  its  broader 
aspects. 

This  part  of  the  report  has  been  developed  under  seven  major  group- 
ings of  responsibility  and  opportunity  as  follows:  responsibility  of  manage- 
ment, responsibility  of  labor,  responsibility  of  owners,  responsibility  of 
the  public,  opportunity  of  trade  associations,  opportunity  for  govern- 
mental assistance,  and  duty  of  engineers. 

Detailed  data  supporting  the  general  statements  which  follow  will  be 
found  in  Section  II. 

I.  RESPONSIBILITY  OF  MANAGEMENT 

Improvement  of  Organization  and  Executive  Control. — Planning  and 
control  should  be  adopted  as  fundamentals  of  good  management.  For 
the  most  part  they  have  not  as  yet  penetrated  the  mass  of  American 
industry. 

Managerial  control,  when  properly  planned,  extends  its  influence 
into  every  activity  of  an  industrial  organization  and  plant,  reaching 
materials,  design,  equipment,  personnel,  production,  costs  and  sales 
policies  and  coordinating  these  factors  to  a  common  objective.  While 
this  statement  applies  more  particularly  to  large  plants,  still  the  smaller 
units  can  utilize  the  same  principles  and  thus  secure  the  advantage  of 
modern  methods. 

Production  Control. — Conscious  production  control  tends  to  reduce  or 
eliminate  waste  by  shortening  the  total  time  of  production.  It  ensures 
the  delivery  of  material  where  needed,  whether  it  be  material  in  process 

24 


RECOMMENDATION    FOR   ELIMINATION   OF    WASTE  25 

or  a  finished  product  ready  for  shipment.  Material  schedules  should  be 
installed  and  used.  These  are  a  means  to  reduce  idleness  of  material, 
of  the  workers  who  are  going  to  operate  upon  it  and  of  the  machines  and 
tools  forming  the  equipment  for  the  processes  which  it  is  to  enter.  Work 
in  process  should  be  planned  in  advance  by  methods  which  will  ensure 
its  timely  delivery  to  the  machine  or  operation  where  it  is  needed,  so  that 
there  will  be  no  idleness  between  jobs. 

Balancing  Productive  Capacity  and  Demand. — Productive  capacity 
should  be  conservatively  based  upon  a  careful  study  of  normal  demand. 

The  sound  relation  between  capacity  and  demand  is  shown  only  as 
a  wise  policy  is  adopted  in  regard  to  planning,  routing  and  scheduling 
work  and  as  improved  shop  methods  are  put  into  effect.  There  is  plenty 
of  testimony  to  the  possibility  of  increasing  production  from  a  given  amount 
of  equipment  through  improved  management. 

Development  of  Purchasing  Schedules. — There  should  be  the  same 
careful  coordination  of  purchasing  function  and  control  of  material  pur- 
chased and  not  yet  received  as  is  given  to  material  already  in  the  plant. 
Where  this  is  done  the  interruption  of  work  due  to  lack  of  material,  or  to 
imperfect  material,  is  largely  done  away  with. 

Elimination  of  Cancellations  and  Curtailment  of  Returns. — The  practice 
of  cancellation  of  orders  between  manufacturer  and  mill  and  between 
manufacturer  and  customer  should  be  eliminated  and  there  should  be  a 
curtailment  of  the  privilege  of  returning  goods  ordered  and  received. 
Such  cancellations  and  return  practices  are  vicious  and  directly  hinder 
stabilization. 

Correlation  of  Production  Schedules  with  Sales  Policies. — Produc- 
tion schedules  should  be  based  on  a  carefully  formulated  sales  policy 
determined  from  an  intensive  study  of  markets,  thus  stabilizing  production. 
By  this  method,  which  differs  radically  from  the  usual  haphazard  practice, 
the  pernicious  effect  of  seasonal  manufacturing  can  be  partially  overcome. 
In  a  few  plants  in  the  boot  and  shoe  industry  this  beneficial  result  has  been 
brought  about. 

Inspection. — Adequate  inspection  should  be  maintained. 

In  many  factories,  losses  of  labor  and  material  in  spoiled  and  defective 
work  are  unwarrantedly  high.  The  aggregate  annual  wastage  of  human 
effort  and  goods  from  this  cause  is  very  great.  The  indirect  losses,  which 
are  harder  to  detect  and  measure,  are  often  greater  than  the  direct  losses. 

Maintenance  of  Plant  and  Equipment. — Plant  and  equipment  must  be 
maintained  continually  in  working  condition. 

The  methods  and  means  for  anticipating  possible  breakdowns  and  the 
like  have  been  developed  and  are  well  known.  Upkeep  of  plant  is  con- 
ducive to  maximum  production  as  it  assures  that  equipment  and  machinery 
will  be  continually  in  a  condition  to  operate. 


26  WASTE  IN  INDUSTRY 

Uniform  Cost  Accounting. — Generally  accepted  systems  for  finding 
costs  should  be  established  in  each  American  industry.  In  controlling 
production  and  in  judging  fairly  and  accurately  when  and  where  progress 
and  improvement  are  being  made,  the  lack  of  a  good  cost  control  system 
is  necessarily  a  source  of  much  waste. 

Methods  of  Wage  Payment. — Methods  of  wage  payment  should  be 
adopted,  equitable  and  just  in  their  basis,  ensuring  a  proper  relationship 
between  effort  put  forth  and  results  achieved  by  all  who  participate  in 
the  enterprise. 

Two  leading  facts  should  be  grasped:  special  wage  methods  are 
almost  wholly  futile  in  the  absence  of  standardization  and  system  in  the 
work;  production  standards  and  proper  control  of  work  will,  without 
any  special  wage  method,  accomplish  a  large  part  of  the  desired  result. 

A  danger  lies  in  assuming  that  clever  devices  can  take  the  place  of 
good  management.  The  most  important  function  of  a  wage  payment 
method  from  the  production  standpoint  is  to  oblige  management  to  do 
its  duty. 

Standardization  of  Product. — Products  should  be  standardized  con- 
sistent with  progressive  development  of  manufacturing. 

Standardization  of  Materials. — Materials  should  be  standardized 
to  the  fewest  practicable  kinds,  sizes  and  grades. 

Standardization  of  Equipment. — At  least  the  details  of  equipment, 
including  machines  and  tools,  should  be  standardized  so  as  to  permit  of 
the  widest  interchangeability  and  maximum  usefulness  consistent  with 
improvements  in  design  and  invention. 

Performance  Standardization. — Performance  standards  should  be 
developed  as  a  valuable  aid  to  planning  and  production  control.  Under 
the  week- work  system  such  standards  are  the  basis  of  a  just  measurement 
of  the  individual  worker's  performance  and  of  the  adjustment  of  his  wage 
rate  to  his  capacity.  Under  the  piece-rate  system  they  are  the  basis  of 
just  rates.  Without  standardization  of  appliances,  conditions,  work 
content  and  method,  no  valid  performance  standard  can  be  maintained. 

By  constantly  comparing  actual  performance  with  the  standards  and 
promptly  investigating  the  causes  of  departure  from  standard,  the  manu- 
facturer can  quickly  detect  adverse  conditions  as  they  creep  in,  and  can 
rectify  them.  Performance  standards,  in  fact,  will  enable  him  to  plan 
the  size  of  his  plant  and  operating  force  for  a  given  volume  of  business 
for  continuous  operation. 

Management  and  Workers. — Management  has  a  definite  responsi- 
bility in  selecting,  up-grading  and  maintaining  personnel. 

Experience  indicates  that  the  best  results  can  be  obtained  when 
employment  and  personnel  direction  develops  a  sense  of  mutual  interest 
in  production  on  the  part  of  management  and  workers.  To  accomplish 


RECOMMENDATION  'FOR  ELIMINATION  OF  WASTE  27 

this,  management  should  stimulate  the  interest  of  workers,  individually 
and  collectively,  in  creation,  in  craftsmanship  and  in  the  contribution 
of  their  experience  and  knowledge  to  the  productive  processes.  "  Indus- 
trial relations  "  to  be  effective  should  be  closely  allied  to  production  and 
concern  themselves  with  educating  the  workman  in  the  science  of  process, 
recording  Ms  accomplishment  and  enabling  him  to  become  conscious  of 
the  relationship  of  his  work  to  the  whole. 

During  the  past  few  years,  there  has  been  a  widespread  advance  and 
extension  of  employment  and  personnel  methods  in  industry  and  many 
of  the  accruing  advantages  are  now  generally  known.  Among  these  is  a 
means  whereby  the  worker  has  a  direct  avenue  of  approach  to  his  employer, 
and  the  employer  has  a  means  for  communicating  organization  policies 
to  the  employees. 

Such  industrial  education  and  training  as  has  been  conducted  by 
certain  leading  manufacturers  has  obtained  beneficial  results,  and  it  is 
believed  that  further  developments  along  these  lines  is  desirable. 

Prevention  of  Accidents. — Management  has  a  definite  responsibility 
to  prevent  industrial  accidents.  Systematic  preventative  measures  can 
and  should  be  inaugurated.  With  regard  to  methods  there  is  already  an 
abundance  of  information. 

Research. — Industrial  research  should  be  consistently  carried  on 
both  in  the  individual  plant  and  by  associations.  The  need  for  knowledge 
obtained  by  such  research  is '  manifest  in  every  industry  studied. 
Although  comparatively  new  in  this  country,  the  success  of  research 
laboratories  conducted  by  a  few  large  industrial  firms  and  trade  asso- 
ciations is  well  known. 

H.  RESPONSIBILITY  OF  LABOR 

For  Increasing  Production. — In  discharging  its  responsibility  for 
eliminating  waste  ifi  industry,  labor  should  cooperate  to  increase 
production. 

The  need  for  facts  instead  of  opinions  stands  out  everywhere  in  the 
assay  of  waste  from  intentional  restrictions  of  output.  All  concerned 
need  to  remember  that  science  is  an  ally  and  not  an  enemy,  and  that  no 
policy  can  be  soundly  based  which  ignores  economic  principles. 

Ignorance  of  these  principles  lies  at  the  root  of  most  of  labor's  restric- 
tion of  output.  The  engineers  who  made  the  field  assays  unite  in  point- 
ing out  that  this  attitude  is  beginning  to  change.  The  change  should  be 
aggressively  led;  not  allowed  to  drift.  Labor  organizations  have  an 
opportunity  to-day  which  may  not  soon  occur  again  to  draft  for  them- 
selves a  new  bill  of  rights  and  responsibilities.  Unions  are  now  great 
organizations  with  such  funds  and  personnel  at  their  disposal  as  would 


28  WASTE  JN  INDUSTRY 

have  seemed  fantastic  even  a  quarter  of  a  century  ago.  Their  influence 
permeates  the  whole  of  American  industry,  unionized  or  not.  No  service 
which  they  can  render  can  be  socially  more  valuable  than  that  of  studying 
the  needs  of  the  industries  in  which  they  earn  a  livelihood,  and  allying 
themselves  with  the  technicians  who  serve  with  them  to  increase  pro- 
duction which  will  inure  to  the  ultimate  benefit  of  all. 

For  Standardization  of  Work. — Labor  should  cooperate  to  prepare 
for  and  even  demand  the  determination  of  and  use  of  performance 
standards. 

This  recommendation  made  by  the  engineer  reporting  on  the  printing 
industry  applies  to  labor  in  many  other  industries  as  well:  The  unions 
rightly  insist  on  reasonable  hours  and  the  best  pay  obtainable,  but  to 
discharge  a  responsibility  in  eliminating  waste  they  should  lend  themselves 
to  the  greatest  flexibility  in  the  utilization  and  economy  of  the  services  of 
their  members.  It  is  to  the  worker's  interest  rather  than  to  his  detriment 
that  his  services  should  not  only  be  efficient  but  definitely  recorded  and 
evaluated. 

For  Changing  Rules  Regarding  Restrictions. — Labor  should  change 
its  rules  regarding  restriction  of  output,  unreasonable  jurisdictional  classi- 
fication and  wasteful  methods  of  work,  thereby  removing  sources  of  waste. 

Certain  restrictions  probably  have  seemed  necessary  to  labor  as  a 
basis  for  trading  with  employers.  This  report  is  concerned  with  restric- 
tions only  in  their  relation  to  waste.  It  recommends  a  revision  in  the 
light  of  the  strength  and  standing  of  organized  labor  to-day.  The  trading 
basis  is  not  sufficient  justification  for  union  rules. 

For  Improving  Health  and  Reducing  Accidents. — Labor  is  responsible 
no  less  than  management  for  improving  the  health  of  the  workers  and  for 
preventing  accidents  in  industry.  Unions  have  accomplished  much  in 
protecting  their  members  through  educational  work  in  health  and  safety, 
but  there  is  still  much  to  be  done,  in  cooperation  with  management  and 
community  organizations. 

Periodical  physical  examinations  and  medical  advice  have  resulted 
in  a  number  of  instances  in  substantial  improvement  in  the  health  and 
well-being  of  workmen.  In  many  cases,  however,  there  exists  a  strong 
prejudice  against  such  examinations.  As  a  result  of  this  unfortunate 
attitude  many  workers  live  in  subnormal  health  when  their  condition  is 
easily  remediable. 

For  Improving  Industrial  Relations. — Inasmuch  as  the  organization  of 
personnel  relationships  in  industry  can  only  be  accomplished  through 
the  co-operation  of  both  employer  and  employee,  labor  should  assist  in 
such  work  of  organization  and  in  maintaining  and  utilizing  the  structure 
developed.  Among  the  most  important  causes  of  industrial  discon- 
tentment are  those  connected  with  waste  in  industry:  intermittent 


RECOMMENDATION  FOR  ELIMINATION  OF  WASTE  29 

employment,  fear  of  unemployment,  lack  of  scientific  and  accepted  methods 
of  determining  wages  and  hours,  inequalities  of  opportunity,  ill  health 
and  industrial  accidents,  as  well  as  those  caused  by  backward  management 
and  restrictions  of  output. 

m.  RESPONSIBILITY  OF  OWNERS 

The  owners  of  industry  through  the  banking  function  or  otherwise 
share  in  the  responsibility  for  eliminating  waste  in  industry.  They  have 
the  duty  particularly  of  assisting  in  stabilizing  production.  To  carry  out 
such  a  policy  is  peculiarly  the  banker's  interest. 

While  it  is  true  that  balance  sheets  and  income  statements  are  gages 
of  the  degree  of  success  of  a  business,  it  is  evident  from  the  assay  of  waste 
that  these  statements  often  do  not  reveal  all  or  even  the  greater  part  of 
the  facts  regarding  production.  Certain  banks  have  an  industrial  staff 
to  give  service  to  their  customers  and  to  study  industrial  questions  more 
closely.  It  may  not  be  long  before  such  things  as  good  management 
methods  are  universally  recognized  as  commercial  assets. 

IV.  RESPONSIBILITY  OF  THE  PUBLIC 

Need  of  Public  Interest. — In  the  study  of  industrial  waste,  there  can 
be  no  setting  apart  of  the  public  as  a  separate  group.  The  public  com- 
prises all  groups,  and  the  public's  responsibility  for  eliminating  waste  is 
large.  A  campaign  to  increase  the  productivity  of  industry  cannot  be 
conducted  without  widespread  interest  and  support.  The  engineers  can 
initiate  such  a  campaign,  but  they  cannot  press  it  to  a  solution  unless  the 
public  so  desires. 

Style  Changes. — In  certain  industries  the  consuming  public  is  to  a 
degree  responsible  for  seasonal  fluctuations  because  of  the  eagerness  with 
which  it  accepts  or  adopts  changes  in  style.  Styles  should  be  viewed  at 
least  in  part  from  the  standpoint  of  usefulness  and  economy. 

Distribution  of  Demand. — The  public  can  assist  in  stabilizing  industry 
by  accepting  a  sensible  distribution  of  demand  throughout  the  year. 

This  applies  for  example  to  the  building  industry  in  which  there  is  a 
strong  tradition  to  the  contrary.  Instead  of  crowding  our  main  construc- 
tion work  into  seven  or  eight  months,  not  only  must  work  in  the  slack 
months  be  developed,  but  all  that  can  be  deferred  from  the  busy  to  the 
more  idle  season  should  be  so  deferred. 

Community  Co-operation  With  Industry. — Public  and  semi-public 
agencies  can  assist  by  definitely  encouraging  and  supporting  the  efforts 
for  elimination  of  waste.  Bodies  such  as  local  Chambers  of  Commerce 
and  other  civic  and  community  associations  can  bring  influence  to  bear 


30  WASTE  IN  INDUSTRY 

through  local  conferences  with  the  different  branches  of  industry.  In 
particular  such  effort  might  be  directed  toward  the  construction  of  dwell- 
ings, the  furtherance  of  public  health  and  the  prevention  of  non-industrial 
accidents. 

Collective  purchasing  agencies  may  assist  by  educating  the  public 
in  better  methods  of  buying,  thus  having  an  influence  on  the  stabilization 
of  industry  by  reducing  the  number  of  items  of  goods  demanded  and 
distributing  the  demand  over  a  longer  period  of  time. 

V.  OPPORTUNITY  OF  TRADE  ASSOCIATIONS 

Work  for  Comprehensive  Organizations. — Trade  associations  should 
be  formed  in  those  industries  lacking  comprehensive  organizations. 

The  clothing  industry  lacks  any  comprehensive  trade  body  through 
which  common  problems  can  be  studied  and  common  remedies  applied. 
The  organizations  supported  by  this  industry  as  a  whole  have  to  do  prin- 
cipally with  marketing  the  product,  such  as  displaying  goods  and  meet- 
ing buyers.  There  is  no  joint  agency  studying  the  obvious  weaknesses 
in  manufacturing. 

As  another  example,  there  is  no  association  for  the  printing  machinery 
trade,  and  it  is  recommended  that  one  be  formed. 

In  many  industries  which  already  have  trade  organizations  a  greater 
degree  of  cooperation  and  publicity  for  their  work  and  policies  would 
steadily  improve  and  increase  their  effectiveness.  Trade  organizations 
should  collect  and  make  public  trade  information,  including  current 
data  on  production,  stocks  on  hand,  consumption,  the  general  price  levels 
of  essential  commodities,  and  statistics  of  active  and  idle  plant  capacity. 
Slich  information  would  make  for  stability  and  elimination  of  waste. 

Industrial  Standardization. — Trade  associations  should  promote  pro- 
grams for  the  standardization  of  cost  accounting  methods,  the  introduction 
of  standardized  material  specifications,  the  establishment  of  production 
standards,  the  standardization  of  equipment  and  the  standardization  of 
finished  products. 

VI.  OPPORTUNITY  FOR  GOVERNMENTAL  ASSISTANCE 

National  Industrial  Information  Service. — A  national  industrial  infor- 
mation service  should  be  established  to  furnish  timely,  regular,  and  com- 
plete information  on  current  production,  consumption  and  available 
stocks  of  commodities,  supplementing  the  work  of  private  agencies. 

One  of  the  outstanding  facts  in  connection  with  this  assay  is  the 
scarcity  of  authoritative  sources  of  satisfactory  information.  Various 
industries  have  tried  to  secure  data  informally.  But  it  is  essential  that 


RECOMMENDATION    FOR   ELIMINATION    OF    WASTE  31 

such  information  be  collected  and  presented  to  the  entire  industrial 
community,  including  the  buyer,  the  seller  and  the  banker. 

The  great  need  for  complete  information  with  regard  to  current  pro- 
duction and  consumption  and  stocks  of  every  important  commodity,  is 
obvious  to  all  serious  students  of  industry. 

A  National  Statistical  Service. — A  national  statistical  service  should 
be  established  and  maintained  covering  employment  requirements  and 
conditions  throughout  the  country. 

The  fundamental  knowledge  required  to  make  a  correct  analysis  of 
unemployment  in  any  period  is  not  at  present  obtainable.  The  meager 
information  for  such  a  study  has  to  be  collected  from  many  agencies. 
These  are  under  no  central  control,  they  are  often  not  in  contact  and  fre- 
quently duplicate  effort.  -:  ^ 

During  the  past  seven  years  the  U.  S.  Bureau  of  Labor  Statistics  has 
gathered  statistics  of  strikes  and  lockouts  from  various  sources  and  has 
published  them  in  the  Monthly  Labor  Review,  These  figures  are  not  com- 
parable with  the  statistics  contained  in  the  earlier  reports  either  in  com- 
pleteness or  in  accuracy.  The  Bureau  has  not  undertaken  any  special 
field  investigations,  and  it  has  no  authority  "  to  require  reports  relative 
to  strikes  from  anyone." 

As  the  extent  of  seasonal  employment  and  temporary  shutdowns  and 
layoffs  has  not  been  subjected  to  a  general  statistical  measurement,  the 
resulting  industrial  waste  cannot  be  determined  with  any  degree  of 
accuracy.  There  are  no  employment  figures  comparable,  for  instance, 
with  those  collected  in  England  by  the  Board  of  Trade. 

Principles  for  Adjustment  and  Settlement  of  Labor  Disputes. — A  body 
of  principles  for  the  adjustment  of  labor  disputes  should  be  accepted,  which 
can  be  developed  with  experience. 

Thus  far  American  legislation  for  the  settlement  of  these  problems 
presents  almost  as  many  varieties  as  there  are  states.  The  nomenclature 
of  the  bodies  created  to  deal  with  controversies  between  employer  and 
employee  may  in  many  cases  be  the  same,  but  their  duties  and  manner 
of  appointment  differ  widely.  Almost  the  only  consolation  to  be  drawn 
from  this  legislation  is  the  fact  that  it  recognizes  a  need.  In  no  state  has 
the  existing  machinery  shown  itself  capable  of  meeting  a  great  crisis.  The 
experience  of  Kansas  is  too  new  to  be  included  in  this  comment. 

No  federal  legislation  has  resulted  from  the  recommendations  of  the 
Second  Industrial  Conference  (1919) — the  most  comprehensive  attempt 
yet  made  in  America  to  meet  this  pressing  problem.  In  view  of  the  waste 
resulting  directly  and  indirectly  from  labor  disputes,  there  is  obvious 
need  for  wisdom  to  create  and  operate  successfully  agencies  endowed 
with  sufficient  power  and  vision  to  adjust  or  stop  the  destructive  and 
needless  controversies  over  labor  questions. 


32  WASTE  IN  INDUSTRY 

Public  Health  Policy. — A  national  policy  regarding  public  health 
should  be  accepted  and  put  into  effect.  The  reports  dealing  with  health, 
prepared  in  connection  with  this  study  by  a  group  of  physicians,  indicate 
the  importance  of  maintaining  the  health  of  industrial  workers  as  a  factor 
in  production  and  as  a  means  of  eliminating  one  form  of  waste.  These 
reports  also  declare  for  an  aggressive,  continuous,  national  public  health 
policy. 

National  Program  for  Industrial  Rehabilitation. — The  national  program 
for  industrial  rehabilitation  should  be  encouraged.  It  should  offer  oppor- 
tunities for  the  education  and  placement  of  those  having  physical  and 
mental  defects  as  well  as  those  handicapped  by  industrial  accidents  or 
by  war.  Formerly  such  incapacitated  men  were  treated  as  if  they  had  no 
economic  value.  Many  striking  examples,  however,  have  led  to  the 
conviction  that  many  such  men  can  be  so  trained  as  to  make  them  useful 
workers.  Comprehensive  efforts  for  their  vocational  rehabilitation  are 
being  made  through  the  co-operation  of  federal,  state,  industrial  and 
commercial  agencies. 

Nation-wide  Program  of  Industrial  Standardization. — A  nation-wide 
program  of  industrial  standardization  should  be  encouraged  by  the  gov- 
ernment in  cooperation  with  industry.  In  the  standardization  of  design 
of  product,  methods  of  procedure  and  number  of  models,  there  rests  a 
large  opportunity  for  the  reduction  of  waste. 

A  special  service  which  the  government  can  render  in  this  connection 
is  the  standardization  of  its  own  demands.  Several  government  depart- 
ments have  their  own  paper  specifications,  for  example,  with  no  relation 
to  each  other,  or  to  any  standard  brand.  These  departments  might  well 
take  the  first  step  by  standardizing  the  paper  they  use  on  the  basis  of  a 
selected  list  of  well-known  brands. 

It  is  not  sufficient,  however,  to  attempt  to  standardize  the  product 
of  a  given  industry,  for  almost  every  industry  is  so  dependent  upon  others 
that  they  too  must  co-operate.  The  federal  government  could  call 
together  the  representatives  of  the  trade  associations  of  interdependent 
industries  and  in  co-operation  form  committees  for  this  purpose.  The 
opinions  or  decisions  of  such  committees  might  from  time  to  time  be 
promulgated  as  standards  of  practice. 

Revision  of  Federal  Laws. — Where  federal  laws  interfere  with  the 
stabilization  of  industry  they  should  be  revised  in  the  interests  of  the 
whole  people. 

The  largest  area  of  waste  lies  in  the  periods  of  slack  production  and 
unemployment,  due  to  the  ebb  and  flow  of  economic  tides  between  booms 
and  slumps.  Studies  of  industries  as  a  whole  show  that  we  usually  expand 
our  equipment  at  the  periods  of  maximum  demand  for  products  instead  of 
doing  our  plant  expansion  during  periods  of  slack  consumption.  While 


RECOMMENDATION  FOR  ELIMINATION  OF  WASTE  33 

it  cannot  be  expected  that  all  industry  could  be  so  stabilized  as  to  do  its 
capital  construction  in  slack  periods,  there  are  some  industries  which  could 
be  led  in  this  direction  by  co-operation  with  the  government  and  co-opera- 
tion among  themselves.  This  applies  particularly  to  railways,  telephones, 
telegraphs,  power  concerns  and  other  public  utilities,  and  to  expenditure 
upon  our  municipal,  state  and  national  public  works. 

As  a  striking  example,  in  a  seasonal  industry  such  as  coal  mining,  no 
adequate  solution  regarding  stabilization  can  be  found  except  through 
organized  co-operation  of  operators,  labor,  railroads  and  large  consumers. 
Under  existing  laws  as  to  combinations,  such  co-operation  cannot  be  car- 
ried out.  Therefore,  we  believe  that  federal  legislation  is  necessary 
permitting  such  cooperation  under  competent  government  authority. 

VH.  DUTY  OF  ENGINEERS 

The  duty  of  engineers  is  a  part  of  all  the  responsibilities  previously 
stated  in  different  recommendations. 

Engineers  come  in  contact  with  and  influence  every  activity  in  industry 
and  as  a  body  possess  an  intimate  and  peculiar  understanding  of  intricate 
industrial  problems.  They  are  in  a  position  to  render  disinterested  service, 
and  their  peculiar  responsibility  is  to  give  expert  judgment  wherever 
engineering  training  and  technical  skill  are  needed  to  reach  a  just  decision. 

This  report  brings  forward  certain  pressing  problems  concerning  the 
solution  of  which  engineers  should  hasten  to  assist.  The  assays  of  waste 
show  first  the  need  of  definite  and  quantitative  industrial  information  on  a 
multitude  of  points.  Science  has  pushed  ahead  in  some  directions; 
it  lags  behind  in  others.  The  duty  of  the  engineer  is  pre-eminently  a  duty 
to  enlarge  the  boundaries  of  knowledge.  His  lifelong  training  in  quanti- 
tative thought,  his  intimate  experience  with  industrial  life,  leading  to  an 
objective  and  detached  point  of  view,  his  strategic  position  as  a  party 
of  the  third  part  with  reference  to  many  of  the  conflicting  economic  groups, 
and  above  all  his  practical  emphasis  on  construction  and  production, 
place  upon  him  the  duty  to  make  his  point  of  view  effective. 

It  is  peculiarly  the  duty  of  the  engineers  to  use  their  influence  individu- 
ally and  collectively  to  eliminate  waste  in  industry. 


CHAPTER  IV 

DESCRIPTION    OF  QUESTIONNAIRE  AND  EVALUATION  SHEET 
THE  METHOD   OF  ASSAY 

The  Questionnaire.— The  Questionnaire  used  by  the  Committee  was 
prepared  as  a  guide  for  field  investigators.  Wherever  it  has  been  used, 
however,  plant  managers  have  shown  such  marked  interest  that  the 
Committee  believes  its  publication  may  provide  a  standard  of  measure- 
ment for  American  industries  in  general. 

Waste  is  classified  under  three  heads: 

1.  Organization,  which  deals  with  the  human  factor. 

2.  Technical  knowledge,  which  deals  with  the  physical  factor. 

3.  Utilization,  which  deals  with  performance. 

Fifty-eight  main  topics  and  two  hundred  and  sixty  leading  questions 
are  covered  by  the  Questionnaire.  Twelve  main  topics  come  under  the 
heading  "General";  twenty-one  main  topics  and  ninety-two  leading 
questions  under  "Organization";  seven  main  topics  and  forty-four 
leading  questions  under  "Technical  Information";  and  eighteen  main 
topics  and  one  hundred  and  twenty-two  leading  questions  under  "  Utili- 
zation." (See  Questionnaire,  page  39.) 

The  Evaluation  Sheet. — The  Evaluation  Sheet  is  a  summary  of  the 
information  contained  in  the  Questionnaire,  and  is  intended  to  be  a 
mechanism  for  analyzing  and  comparing  the  relative  values  of  the  waste 
factors.  (See  Evaluation  Sheet,  page  50.) 

The  same  grouping  and  sequence  of  information  is  followed  as  in  the 
Questionnaire,  with  the  addition  of  an  assignment  of  responsibility  for 
waste  to  Management,  Labor  and  Outside  Contacts  (the  public  in  general, 
trade  relationships,  etc.). 

Instructions  for  using  the  sheet  are  given  on  page  35. 

The  Evaluation  sheet  does  not  attempt  to  determine  the  efficiency 
of  a  plant  in  percentages.  The  totals  indicate  waste  and  not  effectiveness. 

It  will  also  be  noted  that  the  key  of  percentages  ranges  from  0% 
excellent  to  80%  bad,  making  no  provision  for  100%.  This  decision  was 
arbitrary,  and  limits  the  maximum  possible  points  of  waste  to  80.  In 
the  same  way,  the  best  practice  now  existing  was  taken  as  standard  or  0% 
of  waste. 

34 


QUESTIONNAIRE  AND  EVALUATION  SHEET  35 

INSTRUCTIONS  TO  FIELD  DIRECTORS. 

Fill  out  one  field  report  as  per  attached  copy  for  each  plant  investigated. 

This  field  report  is  an  evaluation  of  the  answers  to  the  guide  questions  or  question- 
naire. 

The  causes  of  waste  to  be  assayed  have  been  grouped  in  three  headings,  the  guide 
questions  or  questionnaire  being  arranged  according  to  this  grouping. 

1.  Organization. — Mechanism  of  industry  as  to  type,  methods  (paper  work)  and 

personnel.     Assignment  and  discharge  of  responsibilities  and  relationships. 

2.  Technical  Knowledge. — Available  engineering  knowledge  as  to  product,  plant 

and  materials. 

3.  Utilization. — Effectiveness  of  organization  and  technical  knowledge.     Direc- 

tion, control  and  accounting  factors. 

Avoidable  waste  is  evaluated  in  comparison  with  the  best  attainable  conditions 
now  practicable  according  to  present  knowledge. 

ASSIGNING  POINTS — OR  RELATIVE  IMPORTANCE 

Put  100.0  in  space  (d). 

100.0  assigned  points  representing  100%  possible  waste.  Determine  according  to 
judgment  and  impressions  from  investigation,  the  relative  weights  of  the  three  main 
divisions  of  causes,  placing  figures  in  spaces  (a),  (6),  and  (c),  the  total  equaling  100, 
space  (d). 

This  relationship  will  be  identical  for  all  plants  in  the  same  industry. 

Determine  according  to  judgment  and  impressions  from  investigation,  the  relative 
responsibility  of  management,  labor  and  outside  contacts,  dividing  the  assigned  points 
on  total  line,  column  13,  to  total,  same  line,  columns  1,  5,  and  9. 

This  relationship  may  be  varied  for  different  plants  as  may  appear  necessary  from 
their  type,  size  or  geographical  location. 

Distribute  according  to  judgment  and  impressions  from  investigation  the  total 
assigned  points  columns  1,  5  and  9,  to  separate  questions  or  group  of  questions  as  may 
apply.  Bracket  grouped  questions. 

Check  figures  by  adding  across  and  down. 

ESTIMATE  PER  CENT  OF  WASTE,  IRRESPECTIVE  OP  ASSIGNED  POINTS 

For  each  question  answered,  estimate  per  cent  avoidable  waste  as  keyed  with  relation 
to  condition  being  excellent  to  bad  in  relation  to  least  waste. 

Place  per  cent,  opposite  question  number  in  columns  2,  6,  and  10  as  applies,  if  these 
questions  are  grouped.  If  they  are  independent  of  each  other,  place  the  per  cents  in 
columns  3,  7,  and  11. 

Average  per  cent  in  columns  2,  6,  and  10  where  and  as  questions  are  grouped  or 
bracketed. 

Enter  averages  in  columns  3,  7,  and  11  on  line  with  corresponding  assigned  points  in 
columns  1,  5  and  9. 

CALCULATING  WASTE  BASED  ON  ASSIGNED  POINTS 

Multiply  relative  weights  in  columns  1,  5  and  9  by  corresponding  per  cents  in  columns 
3,  7  and  11.  Enter  results — points  waste — on  same  line  in  columns  4,  8  and  12. 

Add  points  waste,  same  line,  columns  4,  8  and  12.  Enter  totals  same  line  column  14. 
Add  columns  4,  8,  12  and  14,  entering  totals  under  each  of  3  main  divisions. 

Check  additions.  Total  each  division,  columns  4,  8  and  12  =  total  column  14 
(Sps.  e,  f,  or  g.) 

Obtain  grand  total,  cross  checking  as  above. 


36 


WASTE  IN  INDUSTRY 


GUIDE  QUESTIONS  FOR  FIELD  WORKERS 
INDEX  TO  QUESTIONNAIRE 

Subjects  in  italics  have  been  added  to  the  original  Questionnaire. 


Accidents  

K 

20 

Address  

D 

4 

Anticipated  business  

U 

16 

Apprentices,  agreement  with 

Union  

K 

15 

Assignments   of   work   and 

tools  

TJ 

5 

Automatic  machinery  

T 

4 

Automatic  sprinklers  

T 

2 

j 

Available  stock  

U 

4 

k 

Benefit  Association  

K 

21 

e 

Bonus  

K 

13 

Budget  

U 

1 

Causes  of  idle  machines  .... 

U 

3 

Causes  of  layoffs  

K 

9 

Causes  of  product  changes  .  . 

T 

7 

j 

Causes  of  quits  

K 

11 

Causes  of  strikes  

K 

17 

Causes  of  waste  

c 

2 

Changes  in  design  of  prod- 

uct   

T 

7 

j 

Changes  in  equipment  

T 

4 

b 

Changes  in  layout  

T 

2 

g 

Changes  in  method,  follow- 

up  

K 

4 

Chart  of  organization  

K 

1 

Chart  of  processes  

U 

4 

g 

Classes  of  work  

D 

7 

Co-ordination  of  plants  with 

home  office  

K 

4 

b 

Cost  data  

D 

13 

Cost  of  living  and  wage  scale 

K 

13 

Costs  

U 

7 

Date  of  organization  

D 

3 

b 

Deadstock  

XT 

12 

k 

Decrease  in  production  per 

man  hour  

U 

10 

Delivery  of  raw  material  

U 

11 

c 

Depreciation  record  

T 

3 

a 

Designing  Department  

T 

7 

b 

K 

20 

h 

Dispatching  U 

5 

Drawings  for  tools  T 

6 

Economic  laws  violated  .  .  .  .  C 

1 

Efficiency  basis  U 

10 

Employers'  Associations  —  T 

1  c 

Employment  routine  K 

7 

Engineering  Department  .  .  .  T 

7  b 

Equipment  inspection  U 

18 

Equipment  inventory  T 

3 

Finished  product  inspection,  U 

17 

Fire  apparatus  T 

2     j 

Floor  space  T 

2  h 

Flow  of  work  T 

2  c-f 

Follow-up  of  injured  K 

20  g 

Follow-up  of  method 

changes  K 

4 

Foremen's  qualifications  rec- 

ord    U 

9j 

Functional  organization  K 

2 

Home  office  management  .  .  .  .   K 

4  b 

Hours  K 

14 

Identical  job  D 

13 

Idle  machine  time  II 

3 

Idle  workers'  time  U 

8 

Incoming  material  D 

4  a 

Injuries  K 

20  c 

Insurance  rate,  accident  .  .  .  .  K 

20  i 

Instructions,  written  K 

4  & 

U 

4  i&j 

Inspection  of  raw  material  .  .  U 

15 

Inspection  of  tools  T 

5 

Inspection  of  work  in  pro-     • 

cess                                       U 

16 

Interchangeably  of  manu- 

factured parts  T 

7  k 

Interdependent  industries  .  .   T 

1  c 

Internal  transportation  .  .  .  .   U 

14 

Inventory  of  equipment  T 

3 

Investigation  of  complaints  .   K 

21  j 

Investments  D 

12 

QUESTIONNAIRE  AND  EVALUATION  SHEET 


37 


INDEX  TO  QUESTIONNAIRE— Continued 


Labor  troubles,  Loss  due  to. . .  U  10  d 

Labor  turnover K  12 

Labor  waste,  degree  of U  10  d 

Layoffs,  causes  of K  9 

Layout  of  plant T  2 

Living  costs  and  wage  scale .  K  13 

Location  of  plant D  4 

Lockers K  20  c 

Lockouts K  17 

Loss  due  to  dead  stock U  12  1 

Loss  due  to  high  labor  turn- 
over   K  12 

Loss  due  to  idle  machinery . .  U  3  e 

Loss  due  to  labor  troubles ....  U  10  d 

Loss  due  to  labor  waste U  10  d 

Loss  due  to  misfits U  10  d 

Loss  due  to  stoppages K  18 

Loss  due  to  strikes K  17  1  &  n 

Loss  due  to  strikes U  10  d 

Loss  due  to  temporary  shut- 
downs    K  10 

Loss    of    earnings    by    idle 

time U  8 

Loss  on  material,  use  of U  12  m 


Machine  rates U  3c 

Make-and-sell  policy U  2 

Maintenance  Department .  .  T  5 

Market  price  and  purchases.  U  11  h 

Markets,  Location  to D  4  a 

Material  in  process U  19 

Material  lists T  7e 

Material  losses,  use  of U  12  m 

Maximum    and    minimum 

stock U  11  c&d 

Medical  examinations K  7 

Method  changes K  4 

Misfits  in  labor U  10  d 

Monthly     record     of     em- 
ployees    K  8 


Name  of  concern D  3 

New  employees  hired  dur- 
ing strike K  17  j 

Number  of  accidents K  20 

Number  of  employees,  by 

months K  8 

Numbering  of  equipment.. .  T  3 


Operating  space T 

Organization  chart K 

Organization,  Form  of D 

Organization  write-up K 

Outgoing  products D 

Overtime K 

Overtime,  frequency K 


Participation  by  workers .  . .  K 

Personnel  Department K 

Personnel  records K 

Piece  work K 

Planning  function U 

Plant  paper K 

Plants  in  various  locations ...  K 
Policy  on  manufacturing  for 

stock U 

Power T 

Prevention  of  accidents .  .  .  .  K 

Prices,  standardization D 

Product  design T 

Production,  increase  and  de- 
crease   U 

Production  standards K 

Progressive  budget U 

Purchases U 


Quality  Campaign 

Quits  followed  up 


Raw  material,  Delivery  of U 

Records  of  rejections U 

Record  of  tools  available .  . .   U 

Record  of  vendors U 

Remedies  for  seasonal  fluc- 
tuations    K 

Remedy    of    damages    by 

workers U 

Repair  record T 

Resident  managers K 

Responsibility     for     condi- 
tion of  tools T 

Research  Department K 

Rest  and  recreation K 

Rest  room K 

Restaurant K 

Results  of  safety  function . . .  K 


2  h 

2  h 
1 

3  a 
3 

4  a 
13 
14 


16 
19 

6 
13 

4 
21  m 

4  b 

2 

2  i 
20 
13  d 

7 

10 
13&9 

1 
11 


16  j 
11 


11  o 
17  f 

5  f 
11  1 

8 

16  h 

3  a 

4  b 

6  d 
5 

21  h&i 
21  g 
21  f 
20  f 


38 


WASTE  IN  INDUSTRY 


INDEX  TO  QUESTIONNAIRE — Continued 


Safety  function 

Sale  prices,  standardization . . 

Savings  from  maintenance . . 

Savings  from  standardiza- 
tion of  equipment 

Savings  from  standard  meth- 
ods  

Schedule 

Seasonal  fluctuations 

Settlement  of  strikes 

Shifts K 

Shop  representation 

Sizes,  Standardization 

Skilled  vs.  unskilled  labor 

Slide  rules  or  charts 

Specifications  for  equipment, 

Specification  for  product . . . 

Sprinklers T 

Standardization  of  cost  data . . 

Standardization  of  equip- 
ment   

Standardization  of  perform- 
ance   U 

Standardization  of  Product . 

Standardization  of  sale  prices 

Standard  production  com- 
pared with  performance . . 

Standardization  of  tools 

Standardization  of  wages .... 

Stock  receipts U 

Stock  records 

Storage  conditions 

Suggestions K 

Stoppages K 

Storage  space T 

Strikes 

Taskwork K 

Temporary  shut-down . 

Tests  of  applicants K 


K 

20  e 

D 

13  d 

T 

5 

T 

4  a 

T 

6  h 

U 

4  b 

E 

8&D9 

K 

17  n 

E 

14 

E 

16 

D 

13  a 

U 

9  i 

T 

4  e 

T 

4 

T 

7  c 

T 

2  j 

D 

13  c 

T 

4  & 

D 

13  a 

U 

4 

T 

7 

1) 

13  d 

U 

9 

T 

5 

1) 

13  b 

U 

12 

U 

12 

U 

13 

E 

21  k&l 

K 

18 

T 

2  h 

K 

17 

K 

13 

E 

10 

E 

7 

Time  card U       6 

Time  lost  through  accidents,  K  20  d 

Time  study U       4e&f 

Toilet  facilities K  21  d 

Tools  standardized T       5 

Trade  Association T       1 

Training     of     incompetent 

workers K      9 

Transfers K       9 

Transportation U  14 

Turnover U  lip 

Types,  Standardization D  13  a 

Understudies,  policy  regard- 
ing   K       2 

Union    agreement    on    ap- 
prentices    K  15 

Union  wage  scale K  13 

Unit  of  comparison C       3 

Unskilled  vs.  skilled  labor. . . .  U       9  i 

Unused  material U  11  n 

Value  of  stores  and  daily 

output U  12 

Variety  of  products D       8  & 

T       7 

Vendors,  record  of U  11  1 

Wagescale K  13 

Wages,  standardization D  13  b 

Waste   (see  also   "Causes" 
and  "Loss  due  to")  ....  C       2 

Welfare  Work K  21 

Workers,  Classification  of .  .  .   U       9  g 
Workers'  efficiency,  basis  for 

estimating U  10 

Workers,    production   stand- 
ards for U       9  f 

Workers'  qualification  record,  U       9k 

Workers, Shifting U  9h 


QUESTIONNAIRE  AND  EVALUATION  SHEET  39 

GUIDE   QUESTIONS  FOR  FIELD  WORKERS 

Questions  in  italics  have  been  added  to  the  original  Questionnaire. 

D.  Descriptive 

1.  Date  of  Report. 

2.  Type  of  Industry. 

As  classified  for  investigation. 

3.  Name  of  Concern. 

(a)  Conducted  as  corporation,  firm,  or  indiiidual. 

(b)  Date  of  beginning  business. 

(c)  Date  of  incorporation. 

4.  Address. 

(a)  Is  plant  well  located  as  to: 

(1)  Incoming  raw  material  and  supplies? 

(2)  Outgoing  product  to  be  marketed? 

(3)  Desirable  grades  and  sufficient  supply  of  labor? 

5.  Where  are  the  General  Executive  Offices? 

6.  Location  of  Plant  or  Plants  and  when  was  each  Established? 

7.  Class  of  Work — contractual,  repetitive  or  continuous. 

8.  What  are  the  Products  Manufactured? 

List  in  sufficient  detail  to  show  any  variance  in  type  with  reference  to  process  or 
secure  catalogue  to  support  any  generalization, 
(a)  To  what  extent  have  you  advanced  the  trade  or  art,  as  to : 

(1)  Increased  yield  of  finished  product? 

(2)  Increase  in  per-worker  production? 

(3)  Reduction  of  hard  manual  labor? 

(4)  Safety  of  operation? 

(5)  Improved  quality  of  product? 

(6)  Decreased  maintenance  costs? 

(7)  After  allowance  for  investment  charges,  what  would  you  estimate  as 

the  net  economy? 
(6)  What  patent  protection  is  enjoyed,  and  when  do  existing  patents  expire? 

(c)  What  part,  if  any,  of  business  is  for  export? 

(d)  Briefly  describe  competitive  conditions  existing. 

(e)  About  what  percentage  of  your  trade's  total  output  do  you  produce? 
(/)   Are  sale-prices  and  terms  uniform  to  all  customers? 

(0)  After  a  proper  return  on  invested  capital,  do  returns  provide  means  for 
reasonable  expansion;  has  this  condition  changed  since  the  beginning  of 
the  War? 

9.  What  has  been  the  Volume  of  Business  for  1918,  1919,  1920? 
State  in  months,  both  in  units  of  product  and  in  money  value. 

(a)  Is  work  seasonal? 

(1)  What  month  is  busy  season? 

(2)  What  month  is  dull  season? 

(3)  Explain  the  seasonal  feature. 

(4)  What  effort  is  made  to  overcome  seasonal  fluctuations? 

(5)  7s  work  taken  at  less  (or  no)  profit  during  slack  season  to  keep  organization 

together? 

10.  What  was  their  Manufacturing  Capacity  hi  1918,  1919  and  1920? 
State  in  units  of  product. 


40  WASTE  IN  INDUSTRY 

D.  Descriptive  (Cont.) 

11.  What  is  the  Total  Investment  in  Plant? 

12.  What  Percentage  is  Required  on  Investment  to  Preserve  Total  Investment? 

13.  What  activities  are  they  chiefly  interested  in? 

(a)  Standardization  of  types  and  sizes? 

(6)  Standardization  of  wages  for  identical  jobs? 

(c)  Standardization  of  cost  data? 

(d)  Standardization  of  sale  prices? 

14.  Have  they  established  any  plan  to   scale  wages   according  to  fluctuating  prices  and 

living  costs? 

K.  Organization. 

1.  Is  there  a  Chart  of  Organization? 

(a)  When  was  it  prepared? 

(6)  Do  means  or  responsibility  exist  to  keep  it  up? 

(c)  Is  it  kept  up-to-date? 

2.  Is  Organization  Built  up  Functionally  or  around  Individuals? 

(a)  What  is  policy  with  reference  to  understudies? 

(6)  Ar^  understudies  trained  for  minor  executive  functions,  and  are  latter  filled  by 
promotion  from  body  of  workers? 

3.  Is  there  an  Organization  Write-up? 

Are  the  duties  of  each  unit  function  or  member  of  the  organization  contained  in 
writing? 

4.  Are  there  Standard  Written  Instructions  as  to  How  each  Function  is  to  be  Performed? 

(a)  How  are  method  changes  authorized  and  followed  up? 

(b)  If  corporation  has  plants  in  various  locations,  how  are  they  co-ordinated  with 

Home  Office — including  appointment  and  supervision  of  resident  managers? 

5.  Is  there  a  Research  Department? 

6.  Are  Personnel  Records  Maintained? 

(a)  Are  they  kept  up  progressively  as  to  quality  and  quantity  production  of  the 
worker? 

7.  What  is  the  Procedure  of  Employment? 

(a)  Is  any  evidence  of  ability  required  on  hiring,  as  O.K.  of  foreman,  medical 

examination  or  investigated  references? 
(6)  How  is  worker  introduced  to  job? 

(c)  Is  definite  policy  practiced  to  develop  each  worker  systematically? 

(1)  Vacancies  filled  by  promotion,  so  as  to  recruit  mainly  for  lowest  posi- 

tions? 

(2)  What  effort  is  made  to  develop  worker's  versatility  or  all-around  trade 

skill? 

(d)  Is  worker  trained  under  competent  functional  instructors  as  to  best  method 

of  performing  work? 

(1)  Are  they  trained  in  separate  shop,  or  regular  shop? 

(2)  Are  definite  assignments  furnished  by  instructors? 

8.  How  many  Employees  are  on  Payroll,  by  Months,  for  Years  1918,  1919  and  1920? 
Secure  in  sufficient  detail  to  derive  relative  quantitative  values  of  unemployment. 

(a)  What  efforts  are  being  made  to  overcome  seasonal  fluctuation? 
(6)  How  many  foremen  employed? 

(1)  At  present? 

(2)  In  normal  tunes? 


QUESTIONNAIRE  AND  EVALUATION  SHEET  41 

K.  Organization  (Cont.) 

(c)  Same  as  next  above  but  as  to  "  men  employed  ": 

Proportion  of  foremen  to  workers  is  useful  if  obtained  for  several  plants  in 

same  industry. 

9.  Are  Records  of  Discharges  and  Layoffs  kept  and  Tabulated  by  Causes? 
(a)  What  is  the  amount  due  to 

1.  Incompetence? 

2.  Temperament? 

3.  Physical  condition? 

4.  Lack  of  work? 

5.  Wages? 

(6)  Are  incompetent  workers  given  training  or  tried  at  other  work  before  dis- 
charging? 

10.  Practice  of  Temporary  Shutdowns. 

(a)  For  what  reasons? 

1.  Inventory. 

2.  Wage  agreements. 

3.  Because  of  unbalanced  production. 

4.  Fluctuations  in  volume  of  business. 

5.  Other  causes. 

(6)  How  many  employees  were  affected  by  each? 

(c)  For  what  period  of  time? 

(d)  What  was  the  loss  in  output  and  money  value  thereof  during  the  period  of 

shutdown? 

11.  Are  Quits  Followed  up  and  Investigated? 

(a)  State  number  of  quits  due  to  different  causes  during  1918,  1919  and  1920 
respectively  (home  conditions,  working  conditions,  availability  of  plant, 
etc.). 

(fe)  If  figures  are  not  available  list  causes  according  to  relative  order  of  importance. 

12.  What  was  Labor  Turnover  for  1918,  1919  and  1920? 

(a)  How  is  it  figured? 

(6)  What  proportion  of  new  employees  made  good? 

(c)   Has  effect  of  labor  turnover  on  production  and  cost  been  determined? 

13.  How  is  Wage  Scale  Determined? 

(a)  Is  it  based  on 

1.  Union  scale? 

2.  Competitive  labor  market? 

3.  Arbitration  or  agreement? 

4.  Living  costs? 

(fe)  What  is  the  overtime  rate  in  production  to  day  rate? 

(c)  Are  workers  paid  day  rates  or  on  basis  of  piece  work,  task  and  bonus  or  other 

forms  of  financial  incentives? 

(d)  If  piece  work  or  bonus  how  is  rate  determined? 

(e)  Are  there  production  standards  for  day  work,  whereby  relative  performance  of 

workers  is  determined? 

14.  What  are  the  Hours  of  Labor  per  Day  and  Week? 

(a)  How  or  by  whom  determined? 
(6)  How  many  shifts? 

(c)  Are  any  productive  workers  regularly  given  overtime? 

(d)  Estimate  overtime  in  man-hours  per  month  for  productive  work. 


42  WASTE  IN  INDUSTRY 

K.  Organization  (Con/.) 

15.  Is  Shop  Open,  Non-union,  or  Union? 

(a)  If  Union,  what  is  agreement  with  reference  to  apprentices? 

16.  Is  there  any  Form  of  Shop  Representation? 

(a)  By  whom  initiated  and  why? 
(6)  State  plans. 

(c)  When  was  it  instituted? 

(d)  What  are  extent  of  powers? 

(e)  What  are  comments  of  the  management  as  to  the  effectiveness? 

17.  During  the  Past  Five  Years  what  Labor  Difficulties  have  been  Experienced  Due  to 

Strikes  and  Lockouts?    Obtain  the  following  information  in  each  case : 
(a)  Date  on  which  strike  or  lockout  occurred. 
(6)  Date  ended. 

(c)  Cause. 

(d)  Length  of  time  previous  to  strike  or  lockout  in  which  production  was  affected. 

(e)  Length  of  time  subsequent  to  strike  or  lockout  before  production  return  to 

normal. 

(/)   In  what  departments  did  strike  or  lockout  occur? 
(<7)  How  many  employees  in  these  departments  were  affected? 
(h)  How  many  employees  in  these  departments  remained  in? 
(i)  How  many  employees  in  other  departments  were  laid  off  due  to  lack  of  work? 
(j)  How  many  new  employees  were  employed  during  strike? 
(fc)  What  was  the  average  labor  force  during  strikes  or  lockouts  compared  with 

that  preceding  it? 
(I)   What  was  the  loss  of  production  during  strike  or  lockout,  measured  in  units 

of  product  or  assemblies? 
(m)  What  wts  the  property  loss,  if  any? 
(n)  Howsattled? 

18.  What  Had  Been  the  History  of  Labor  Difficulties  Due  to  Stoppages  (Unsanctioned 

Strikes)? 

(a)  Date  on  which  stoppage  occurred. 
(6)  Date  ended. 

(c)  Cause. 

(d)  In  what  sections  did  stoppage  occur? 

(e)  How  many  employees  in  these  departments  were  affected? 

(/)   How  many  employees  in  other  sections  were  laid  off  owing  to  lack  of  work? 
(g)  What  was  the  loss  of  production  during  stoppage,  measured  in  units  of  product 

or  assemblies? 
(h)  How  settled? 

19.  Is  Personnel  Function  Headed  Up? 

20.  What  is  the  Cost  per  Year  Chargeable  to  Accidents?     (As  measured  in  hospital 

charges,  compensation  insurance  and  damages  awarded  and  wages  paid  during 

incapacity.) 
(a)  What  was  the  total  number  of  accidents  of  every  nature  for  years  1918,  1919 

and  1920? 
(6)  How  many  were  fatal? 

(c)  How  many  of  serious  permanent  nature? 

(d)  What  was  the  average  time  lost  through  incapacity? 

(e)  Is  there  a  definite  safety  function  and  how  does  it  operate? 
(/)   What  results  are  accomplished? 

(g)  Are  accidents  closely  followed  up  in  homes  and  hospitals? 


QUESTIONNAIRE  AND  EVALUATION  SHEET  43 

K.  Organization  (Con*.) 

(h)  Are  efforts  made  to  place  permanently  or  temporarily  disabled  workers  on 

suitable  jobs? 
(i)  What  reduction  in  insurance  rate  has  been  accomplished  during  1918,  1919 

and  1920,  by  accident  prevention  measures? 

21.  What  is  the  Percentage  of  the  Payroll  Expended  in  So-called  Welfare  Work? 
(a)  Is  there  a  Welfare  Department,  and  if  so,  its  scope? 
(6)  What  Welfare  Work  has  been  attempted  and  discontinued,  and  why? 
(c)  What  are  the  locker  facilities? 
(4)  What  are  the  toilet  facilities? 
(e)  Is  there  a  Benefit  Association? 
(/)   Is  there  a  restaurant  for  employees? 
(g)  Are  there  rest  rooms? 
(h)  Are  there  rest  periods? 
(i)  Are  there  recreation  rooms? 

(j)  Is  provision  made  for  investigation  and  betterment  of  unfair  conditions? 
(k)  To  what  extent  do  workers  make  suggestions  and  through  what  channels? 
(I)   To  what  extent  do  operatives  benefit  by  suggestion? 
(TO)  Is  there  a  plant  paper? 


T.  Technical 

1.  In  what  Way  does  the  Plant  Management  Enter  into  Organized  Relationship? 

(a)  With  its  industry? 

(6)  With  similar  industries? 

(c)  With  inter-dependent  industries? 

2.  Is  there  a  Layout  of  Plant? 

(a)  Is  it  for  insurance  purposes  only? 

(6)  Does  it  show  the  various  departments,  machines  and  work  places? 

(c)  Does  it  show  flow  of  materials  or  work? 

(d)  When  was  it  made? 

(e)  Is  it  kept  up  to  date? 

(/)   What  means  or  responsibility  exist  to  keep  it  up  to  date? 

(g)    Are  changes  in  layout  instituted  by  recommendation  of  foreman   or  as   a 

result  of  staff  study? 
(h)  Square  feet  of  floor  space. 

(1)  Operating. 

(2)  Storage. 

(8)  Administrative  (office), 
(i)   Describe  source  of  power — Water?    Steam? 

(1)  Manufactured. 

(2)  Purchased. 

0)  Are  automatic  sprinkler*,  in  operation? 
3 .  Is  there  an  Equipment  Inventory? 

(a)  Is  record  of  repairs,  replacements  and  depreciation  of  individual  machines  or 
groups  made  and  maintained? 

(c)  Is  each  piece  of  equipment  numbered? 

(c)  Is  inventory  kept  up  to  date? 
4.  Are  there  Standard  Specifications  for  Equipment  for  the  Various  Operations? 

(a)  Give  results  of  savings  due  to  standardization  of  equipment. 


44  WASTE  IN  INDUSTRY 

T.  Technical  (Cant.) 

(6)  Have  there  been  important  changes  in  equipment,  machinery  and  tools, 
during  the  last  twenty  years,  which  have  improved  efficiency  in  your 
industry?  If  so,  state  in  a  general  way  what  these  changes  were. 

(c)  If  special  machinery  and  equipment  have  been  developed,  what  savings  have 

resulted? 

(d)  If  automatic  or  semi-automatic  equipment  has  been  installed,  what  savings 

have  resulted? 

(e)  Are  there  slide  rules  or  charts  covering  speeds  and  feeds? 

5.  Is  there  a  Separate  Maintenance  Department? 

(a)  To  whom  is  it  subordinated? 

(6)  Is  equipment  maintained  on  a  basis  of  periodic  inspection  and  repair? 

(c)  What  savings  have  resulted  by  this? 

6.  Are  Tools  Standardized? 

(a)  Are  drawings  or  gages  used? 

(6)  Who  is  responsible  for  design  of  or  standards  for  tools? 

(c)  Is  there  a  department  for  making  tools? 

(d)  Who  grinds  and  sharpens  tools  or  is  responsible  for  their  condition  for  use? 

(e)  Is  tool  room  well  equipped? 

(/)  Is  tool  room  neat,  orderly  and  under  effective  control  as  to  tools,  in  and  out? 
(g)  Does  any  conscious  relationship  exist  between  the  quantity  of  tools  and  the 

machine  equipment? 

(h)  What  savings  have  been  accomplished  through  standard  methods? 
7    Product  Design  and  Standardization. 

The  intent  of  these  questions  is  to  suggest  means  to  develop  fully  the  lack  of 

standardization  of  designs  and  the  evils  incidental  thereto.    This  is  an 

important  feature,  and  should  be  developed  as  much  in  detail  as  possible. 

Give  separate  answers  on  product  according  to  division  stated  in  answer  to 

question  D-8. 

(a)  State  the  number  of  designs  or  models  of  product.    Show  the  effect  of  this 
variety  upon  scale  of  production.     Obtain  data  showing  average  size  of 
manufacturing  lot. 
(6)  Is  there  a  Designing  or  Engineering  Department? 

(c)  Are  specifications  of  product  a  matter  of  record? 

(d)  Are  there  drawings  covering  all  products? 

(e)  Are  there  material  lists  covering  all  products? 

(/)  Are  parts  covered  by  single  drawings  or  several  parts  grouped  in  one  drawing? 
(g)  Are  stock  parts  entering  into  manufactured  products  standardized?     (Screws, 

bolts,  nuts,  etc.,  in  metal  trades;  sewings  and  findings  in  shoe  and  clothing 

trade;  inks,  glue,  bindings,  sundries  in  printing,  etc.) 
(h)  Are  products  of  different  construction  or  similar  construction,  with  small 

variation? 
(i)  Are  similarly  constructed  products  made  of  different  quality  or  grade  of 

materials? 
(j)  To  what  extent  is  change  of  design  due  to  following: 

1.  Customer? 

2.  Designing  or  Engineering  Department? 

3.  Sales  management? 

(k)  Are  manufactured  parts  interchangeable? 

(I)   List  in  groups  the  manufactured  products  sold  or  used  for  the  same  purpose. 

(m)  Number  of  types  or  styles  made. 


QUESTIONNAIRE  AND  EVALUATION  SHEET  45 

T.  Technical  (Cant.) 

(n)  Average  number  of  types  added  per  year  1912-20  inclusive. 

(o)  Average  number  of  types  discontinued  per  year  1912-20  inclusive. 

8.  To  what  Extent  are  Various  Operations  Standardized: 

(a)  As  to  "  work  content "? 

(b)  As  to  work  places  and  their  arrangement? 

9.  Are  Motion-sequences  for  each  Operation  Standardized? 

U.  Utilization 

1.  Is  any  Effort  made  to  Establish  a  Progressive  Budget?    The  extent  to  which  a  con- 

scious effort  is  made  to  relate  anticipations  of  finance,  sales  and  labor  conditions 
with  production. 

(0)  Is  the  normal  capacity  known  in  hours  and  product  and  is  there  a  standardized 

overhead? 

(b)  Is  anticipated  business  compared  with  normal?     (The  difference  showing 

anticipated  gain  or  loss.) 

(c)  Is  money  value  of  manufactured  product  inventory  based  on  actual  cost, 

standard  cost  or  selling  price?  / 

2.  Is  Policy  to  Make-and-sell  or  Sell-and-make?  >^In  so  far  as  possible  secure  data 

whereby  advantages  and  disadvantages  are  portrayed. 

3.  Is  there  any  Record  of  Idle  Machine  Time? 

(a)  Is  it  computed  in  money-hours  or  man-hours? 

(b)  If  so,  obtain  idle  time  data  for  following: 

1.  Awaiting  work. 

2.  Awaiting  worker. 

3.  Awaiting  material. 

4.  Awaiting  tools. 

5.  Repairs. 

6.  Lack  of  work. 

(c)  Have  machine  rates  been  determined  and  if  so,  how?    Do  you  use  these  as  a 

guide  in  fixing  selling  price,  particularly  to  secure  business  in  dull  times? 

(d)  Give  amount  and  percentages  of  idle  time,  by  months,  for  years  1918,  1919 

and  1920,  commenting  on  causes  of  peaks  and  depressions. 

(e)  State  total  cost  of  idle  time  in  1918,  1919  and  1920. 

4.  Is  Planning  Function  Centralized? 

(a)  Is  product  manufactured  on  individual  order,  a  group  of  orders,  or  in  quan- 

tities? 

(b)  If  wholly  or  partly  in  stock  quantities,  are  quantities  determined  on  a  maxi- 

mum or  minimum  stock  record  or  a  period  schedule? 

(c)  How  far  ahead  is  work  planned? 

(d)  Are  standards  of  performance  available  from  which  work  is  planned? 

(e)  Are  performance  standards  superficial  or  based  on  study? 
(/)  Do  performance  standards  show: 

1.  Set  up  times? 

2.  Production  per  hour? 

3.  Elements  from  which  built  up? 

(g)  Are  there  charts  or  sheets  showing  the  various  operations,  their  sequence,  and 

the  equipment  to  be  used? 
(h)  Do  these  charts  show  alternatives? 

(1)  Are  there  written  standard  instructions  for  each  operation? 


46  WASTE  IN  INDUSTRY 

U.  Utilization  (Cont.) 

(j)   Are  production  instructions  in  form  of  drawings,  language,  or  both? 
(k)  Are  there  records  showing  stock  on  hand  and  available? 

5.  Are  Assignments  made  with  Reference  to  Worker  or  Work  Place? 

(a)  If  worker,  how  is  machine  or  work  place  capacity  controlled? 
(6)  If  work  place,  how  is  productive  time  of  worker  controlled? 

(c)  Are  the  following  records  maintained : 

1.  Work  ahead  of  worker  or  work  place,  for  which  materials,  tools  and 

facilities  are  on  hand  and  in  readiness? 

2.  Workers'  reports  on  lots  or  jobs? 

(d)  Who  makes  tool  assignments? 

(e)  Are  tools  assigned  to  standardized  work  places? 
(/)   Is  there  a  record  of  tools  not  in  use  or  available? 

6.  Is  there  a  Time  Card  for  each  Worker,  each  Job,  each  Day? 

(a)  Is  it  made  out  in  advance  and  by  whom? 
(6)  Do  clerks  visit  work  places  to  obtain  time? 

(c)  Do  tickets  or  time  cards  show  elapsed  time? 

(d)  Is  time  determined  by  time  stamp? 

(e)  Do  tickets  or  time  cards  show  number  of  pieces  completed? 
(/)  What  is  the  authority  for  issue  of  materials? 

(g)  How  is  material  issued  to  work  place? 

(h}  Is  movement  of  material  to  work  place  controlled  by  planning  department? 

7.  Are  Cost  Methods  "  Tied  in  "  with  Financial  Books? 

(a)  Are  costs  figured  on 

1.  Each  job  or  lot? 

2.  On  general  overall  averages  or  trial  jobs? 

3.  By  combining  unit  standards  of  operation  or  assembly? 

4.  By  what  method? 

(6)  Are  material  costs  figured  on 

1.  Purchase  price? 

2.  Average  purchase  price? 

3.  Standard  price? 

4.  Market  price? 

(c)  To  whom  are  production  costs  made  available? 

(d)  Are  Superintendents  or  Foremen  held  responsible  for  costs  in  their  depart- 

ment? 

8.  Is  there  any  Record  of  Idle  Workers'  Time? 

(a)  Is  it  computed  in  money  or  man-hours? 
(6)  Are  causes  shown? 

1.  Awaiting  work? 

2.  Awaiting  tools? 

3.  Awaiting  materials? 

4.  Personal  necessities? 

5.  Awaiting  machine  repairs? 

(c)  State  available  figures  for  1918,  1919  and  1920. 

(d)  Has  any  analysis  been  made  as  to  relative  proportion  of  causes?     If  so,  give 

analysis. 

(e)  Give  loss  of  earnings  of  employees,  caused  by  idle  time. 
As  to  Average  Mechanic: 

( 1 )  Per  cent  of  total  year  he  works  ? 

(2)  Per  cent  of  total  year  idle  through  lack  of  work? 


QUESTIONNAIRE  AND  EVALUATION  SHEET  47 

U.  Utilization  (Cant.) 

(3)  Per  cent  of  total  year  idle  through  other  causes  than  lack  of  work? 

(4)  Are  these  figures  taken  from  actual  records  or  from  memory? 

9.  Is  any  Attempt  Made  to  Compare  Production  Performance  with  Production 
Standards?    Give  comparative  factors,  if  obtainable, 
(a)  With  reference  to  job. 
(6)  With  reference  to  worker. 

(c)  With  reference  to  department  or  group. 

(d)  With  reference  to  equipment. 

(e)  What  is  the  procedure  when  an  operative  or  a  group  of  operatives  deliver 

less  than  standard  production? 
(/)    Are  definite  production  standards  (for  worker  to  attain  each  day)  provided  for 

various  kinds  of  work? 

(g)  Are  workers  classified  by  relative  capacity  for  various  jobs? 
(h)  Are  they  shifted  according  to  their  classifications? 
(i)    How  far  is  labor  classified  between  "  skilled  "  and  "  unskilled  "  to  avoid  paying 

former  for  doing  latter  work? 

(j)  What  Record  of  Foreman' 3  Qualifications,  and  how  utilized? 
(k)  What  Record  of  Workers'  Qualifications,  and  how  utilized? 

10.  Has  Production  per  Man-Hour  Increased  or  Decreased  Since  1914,  and  How  Much? 

(a)  Taking  1912  labor  as  100%  efficient,  give  efficiency  since  1912-13-14-15-16- 

17-18-19-20. 

(b)  List  three  chief  causes  in  order  of  importance  for  increase  or  decrease  of  workers 

efficiency. 

(c)  Has  there  been  marked  change  in  efficiency  since  middle  of  1920? 

(d)  (1)   How  great? 

(2)  What  cause  is  attributed? 

(e)  What  is  degree  of  labor  waste? 

(1)  Actual  loss  of  time,  as  idle  time — "out  of  a  job  "? 

(2)  Labor  waste  while  actually  employed? 

(a)  Deliberate  curtailment  of  production? 

(b)  Misfits  and  no  actual  means  for  measuring  "  actual  output " 

against  "  production  standards"? 

(c)  Skilled  labor  doing  unskilled  work? 

(3)  Labor  troubles  (strikes,  lockouts,  etc.)? 

11.  Do  All  Purchases  Clear  Through  a  Purchasing  Agent? — Give  answer  in  detail  with 

all  exceptions. 

(a)  Are  all  expenditures  covered  by  proper  authorization? 

(6)  Who  is  responsible  for  quantities  purchased? 

(c)  Are  quantities  based  on  maximum  and  minimum  stocks? 

(d)  How  are  these  maximum  and  minimum  quantities  determined? 

(e)  Are  unstandardized  materials  purchased  in  relation  to  any  production  sched- 

ule? 

(/)   What  bearing  does  current  market  price  have  on  quantities  purchased? 
(g)  Who  is  responsible  for  quality  or  grade  of  material  purchased? 
(h)  Are  purchases  made  to  conform  with  definite  specifications  or  with  certain 

tests? 

(i)   Is  test  or  examination  made  on  receipt  of  material? 
0')   What  co-ordination  exists  between  purchasing  and  planning  function  as  to 

time  required  or  allowed  to  secure  materials? 


48  WASTE  IN  INDUSTRY 

U.  Utilization  (Con/.) 

(k)  What  method  is  used  in  following  up  purchases  to  secure  delivery  within  the 
prescribed  time? 

(0   What  records  are  maintained  of  vendors,  prices  and  quotations? 

(m)  Estimate  from  stores  record  in  terms  of  money  or  units  of  quantity,  the  pro- 
portion of  material  not  issued  within  six  months  and  over  a  year. 

(n)  To  what  extent  are  storekeepers  permitted  to  order? 

(0)  Average  days  required  for  delivery  of  raw  materials, 
(p)    What  is  material  turnover: 

(1)  Times  per  year? 

(2)  From  Receiving  to  Shipping? 

(q)  State  respective  quantities  and  values  of  chief  items  comprising  60  to  90  per  cent 
of  total  material  purchases;  distinguishing  direct  and  indirect  material, 

12.  What  Control  Exists  of  Stock  Receipts,  Issues  and  Returns? 

(a)  How  many  stock  records  are  maintained? 
(6)  What  is  their  character? 

(c)  Where  kept? 

(d)  How  are  quantities  in  stock  ascertained? 

(e)  How  are  quantities  in  stock  verified? 

(/)  What  are  the  difference  between  record  and  actual  count? 

(g)  How  are  these  differences  adjusted? 

(h)  For  what  work  period  are  stocks  kept  on  hand? 

(1)  How  does  value  of  stores  on  hand  compare  with  value  of  daily  output? 

(j)  What  control  exists  of  "  dead "  stock  (stores,  finished  product,  finished 

parts)? 

(k)  How  is  dead  stock  disposed  of? 

(I)   Estimate  loss  due  to  dead  stock  over  three  years'  period. 
(m)  What  is  loss  on  materials  used? 

(1)  Measured  or  weighed. 

(2)  Unaccounted  for. 

13.  What  are  Material  Storage  Conditions? — To  be  answered  with  reference  to  raw 

materials,  finished  parts,  finished  products,  and  processed  material. 

(a)  Where  are  storerooms  located  with  reference  to  production  departments? 

(6)  Are  storerooms  neat  and  orderly? 

(c)  Is  material  stored  on  floor,  racks,  fixed  or  movable  containers? 

(d)  Is  the  material  in  the  storerooms  arranged  or  indexed  so  as  to  be  quickly  found? 

14.  What  Type  of  Internal  Transportation  Exists?    Explain  in  detail  for  different 

materials. 

(a)  Narrow  gage  trucks. 

(6)  Lift  trucks. 

(c)  Wheel  trucks. 

(d)  Tote  boxes. 

(e)  Movable  racks. 
(/)   Human  arms. 

(g)  What  means  are  provided  for  material  transportation? 

(h)  To  what  extent  are  gravity-transport  devices  used? 

(i)    Describe  railway  and  side-track  facilities. 

(j)   What  degree  of  co-operation  by  railroad  representatives,  as  to  car-placing  and 

demurrage? 
(k)  Is  any  local  organization  (e.g.  Board  of  Trade)  active  in  obtaining  improvements 

in  transport  service? 


QUESTIONNAIRE  AND  EVALUATION  SHEET  49 

U.  Utilization  (Con*.) 

15.  Is  Raw  Material  Subjected  to  Examination  or  Test  on  Receipt? 

(a)  By  whom  are  the  tests  made? 

(6)  How  are  requirements  determined? 

(c)  What  is  the  percentage  of  rejections? 

(d)  What  saving  may  be  traced  to  these? 

16.  Is  Inspection  of  Work  in  Process  Made? 

(a)  At  what  states  or  after  what  operations? 

(6)  Is  there  a  separate  inspection  department  that  determines  inspection  stand- 
ards?   If  not,  how  are  they  determined? 

(c)  Who  inspects  processed  material? 

(d)  To  whom  are  the  inspectors  responsible? 

(e)  Do  prints  exist  showing  limits  and  tolerances? 
(/)  Are  instructions  to  worker  written  or  oral? 

(g)  Who  instructs  worker  regarding  quality  or  workmanship? 

(h)  Are  operatives  required  to  remedy  damages  without  compensation? 

(i)   Is  any  record  kept  of  kind  and  quantity  of  rejections? 

0')   Evaluate  rejections  in  money  and  percentage  of  output,  if  possible. 

(k)  Have  any  quality  campaigns  been  conducted?    If  so,  describe  and  give  results. 

17.  How  is  Finished  Product  Inspected? 

(a)  By  whom? 

(6)  To  whom  is  inspector  responsible? 

(c)  Who  determines  standards  and  tolerances? 

(d)  Are  written  specifications  furnished  or  available  or  are  they  oral? 

(e)  How  are  rejections  replaced  or  repaired? 

(/)   Is  any  record  kept  of  kind  and  quantity  of  rejections? 

(g)  Evaluate  rejections  in  money  and  percentage  of  total  output,  if  possible. 

18.  What  is  the  Amount  and  Character  of  the  Inspection  Equipment? 

(a)  To  what  extent  is  it  used? 
(6)  When  was  it  first  used? 

(c)  If  possible,  get  data  or  estimate  of  the  savings  effected  in  cases  where  inspec- 
tion equipment  has  been  put  to  use. 

19.  Amount  of  Material  in  Process  (Lbs.  and  $)  Estimated? 

C.  Conclusions 

1.  Are  Generally  Accepted  Economic  Laws  Violated? 

(a)  Give  examples. 

(6)  What  is  effect  of  these  violations? 

2.  In  the  Opinion  of  the  Officer  Interviewed  what  are  the  Most  Important  Causes  of 

Waste  in  this  Business  or  Industry? 

3.  In  General  Cost  Comparisons  what  Unit  of  Comparison  is  Used? 


50 


WASTE  IN  INDUSTRY 


FIELD    REPORT  EVALUATION 

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PART  II 
ENGINEERS'  FIELD  REPORTS 

PAGE 

CHAPTER       V.     THE  BUILDING  INDUSTRY 53 

CHAPTER     VI      MEN'S  CLOTHING  MANUFACTURING 95 

CHAPTER   VII.    SHOE  MANUFACTURING        131 

CHAPTER  VIII.     PI?INTING 176 

CHAPTER     IX.     METAL  TRADES 210 

CHAPTER      X.    TEXTILE  MANUFACTURING                    ,                 .....  246 


52 


WASTE  IN  INDUSTRY 


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CHAPTER  V 

THE  BUILDING  INDUSTRY 
By  SANFORD  E.  THOMPSON 

The  critical  condition  of  the  building  industry  following  the  war— 
the  shortage  of  housing,  the  lack  of  new  construction — has  been  due 
primarily  to  high  costs  of  construction.  Neither  the  workman  nor  the 
capitalist  can  afford  to  buy  at  prices  two  and  a  half  times  above  their 
former  level. 

This  report,  however,  is  not  concerned  with  those  temporary  con- 
ditions, which  are  partially  righting  themselves  as  costs  are  being  reduced, 
except  as  they  tend  to  emphasize  the  fundamental  principles.  The  facts 
of  value  are  those  which  bring  out  the  causes  of  waste  that  are  continu- 
ously resulting  in  irregular  employment,  dissatisfaction,  and  unnecessarily 
high  costs.  It  is  by  studies  of  such  facts — it  is  through  the  tracing  of 
hindrances  due  to  ineffective  management  or  to  labor  conditions — that 
the  means  for  correcting  can  be  found  and  put  into  effect. 

Greater  co-operation  between  the  workmen  and  the  employers  is  an 
absolute  essential.  This  co-operation  must  be  attained  before  we  can 
approach  the  elimination  of  labor  difficulties.  Such  co-operation,  how- 
ever, is  impossible  without  the  removal  of  causes  of  friction  and  the  work- 
ing out  of  plans  to  this  end. 

Primary  Causes  of  Waste. — The  chief  sources  of  waste  in  the  building 
industry  are  as  follows : 

I.  Irregular  Employment. — The  building  trade  workman,  as  shown  by  actual  records, 
is  busy  on  the  average  about  190  days  in  the  year,  or  two-thirds  of  his  time.  The 
seasonal  nature  of  employment  in  the  building  industry  is  shown  in  Figure  9,  page  63. 
A  few  contractors,  individually  or  associated,  are  attacking  this  problem  with  effective 
results.  The  public  also  must  be  educated  to  the  need  of  a  sensible  distribution  through 
the  year  of  its  construction  demands  and  requirements.  Idleness,  however,  is  not  due 
entirely  to  seasonal  demands;  strikes  and  lockouts  are  appreciable  causes. 

//.  Inefficient  Management. — Haphazard  management  in  planning  and  controlling 
work  and  lack  of  standards,  which  often  double  the  labor  cost,  characterize  most  con- 
struction undertakings.  Here,  again,  a  few  builders,  recognizing  the  waste  in  money 
and  man  power,  are  adopting  methods  that  approach  modern  factory  management. 

III.  Wasteful  Labor  Regulations. — Union  regulations  in  the  past  have  produced 
enormous  losses  through  direct  or  indirect  restriction  of  output.  Workmen  and  con- 
tractors, however,  are  beginning  to  appreciate — the  men  often  before  the  employers — 
that  reduced  output  reacts  in  tremendous  fashion  upon  themselves. 

53 


WASTE  IN  INDUSTRY 


Per  Cen1_ 


Secondary  Causes  of  Waste.  —  Customs  or  conditions  prevailing 
throughout  the  industry  are  secondary  sources  of  waste.  In  some  con- 
struction trades  accidents  involve  losses  up  to  10%  of  the  labor  cost 
in  addition  to  the  human  loss  of  lives  and  energy.  The  average  loss, 
computed  from  insurance  statistics,  is  about  2£%  of  labor  cost.  Here 
also  certain  contractors  have  found  it  possible  to  cut  their  accidents  in 
half  through  special  efforts. 

Another  of  these  secondary  causes  is  poorly  designed  equipment  which 
frequently  retards  construction  in  an  extensive  degree  and  permits  waste 
of  materials. 

Extent  of  the  Building  Industry.  —  Building,  including  all  trades  and 
common  labor  incidental  to  it,  contributes  to  the  wealth  of  the  nation 
more  than  $3,000,000,000  per  year,  this  estimate  being  based  on  reports 
issued  by  the  F.  W.  Dodge  Company.  This  figure  does  not  include  repair 
and  miscellaneous  work,  which  would  swell  the  total  by  a  large  percent- 

age.  Yearly  averages  for  the  past  six 
3  g  3  years  show  that  the  activities  of  the 
industry  are  expended  upon 

Residential  buildings  ........  32% 

Industrial  buildings  .........   18% 

Miscellaneous  ..............  50% 

It  is  estimated  from  the  last  issued 
United  States  Census  that  some 
3,000,000  mechanics  and  laborers  were 
employed  in  the  building  industry  in 
1920—  about  7%  of  all  persons  em- 
ployed in  gainful  occupations. 

Relative  Number  of  Men  in  Dif- 
ferent Trades.—  Percentages  of  dif- 
ferent classes  of  labor  in  the  building 
trades  are  shown  in  Figure  1.  These 
percentages  include  both  union  and 
non-union  workers. 

Peculiarities  of  the  Building  In- 
dustry. —  Unlike  manufacturing  opera- 
tions each  building  project  requires 
special  work,  both  architectural  and 
structural.  Buildings  are  erected  for 
numerous  purposes  and  designs  are 
tempered  to  suit  the  fancy  of  archi- 

tects and  owners.     Each  building,  therefore,  may   be    compared   to    a 
special  order  with  new  specifications  going  through  a  factory.     Yet  this 


FIG.  1. — Per  Cent  of  Different  Classes 

Employed  in  Building  Trades. 
(Figured  from  U.  S.  Census,  1910.) 


THE  BUILDING  INDUSTRY  55 

variety  can  scarcely  be  termed  uneconomic  or  wasteful  since  from  the 
artistic  viewpoint  the  extra  expense  of  diversity  of  architecture  and 
types  of  construction  is  warranted.  Standardization  in  housing  has 
been  attempted,  but  the  field  is  very  limited.  Standardization  of 
particular  details  of  construction  has  been  successful  and  has  resulted 
in  appreciable  saving. 

Another  striking  fact  about  the  building  industry  is  that  inasmuch 
as  small  buildings  require  so  little  capital  or  credit,  and  apparently  so 
little  technical  ability,  the  field  is  full  of  small  contractors,  many  of  whom 
operate  for  a  few  years  and  then  fail.  In  Cleveland,  Ohio,  for  example, 
out  of  4,000  contractors  perhaps  not  more  than  400  are  needed.  From 
these  small  firms  the  range  runs  up  to  the  highly  capitalized  company 
with  yearly  business  in  the  millions,  employing  thousands  of  workers 
and  having  a  trained  technical  organization. 

The  Cost-plus  Contract. — The  ordinary  form  of  lump  sum  contract 
places  on  the  contractor  the  entire  burden  of  minor  defects  in  contract 
or  plans  and  also  other  hindrances  over  which  he  has  no  control.  The 
question  of  "  extras  "  is  also  a  constant  source  of  disagreement. 

The  cost-plus  contract  developed  during  the  past  twenty  years  takes 
away  a  part  of  the  element  of  risk  from  the  contractor.  This  form  of 
contract  was  largely  utilized  during  the  war.  Although  its  use  increased 
the  expense,  it  unquestionably  assisted  greatly  in  prosecuting  the  war 
with  vigor. 

The  lump  sum  contract  serves  to  insure  the  owner  against  unauthorized 
expenditures  beyond  what  has  been  planned  for.  The  burden  being  on 
the  contractor,  he  naturally  exercises  special  care  and  skill  in  the  prepa- 
ration of  his  estimates  and  also  in  providing  a  means  to  keep  within  his 
estimates. 

With  the  ordinary  cost-plus  contract  the  greater  the  cost,  the  greater 
the  profit  to  the  builder,  while  the  burden  of  expense  is  thrown  on  the 
owner.  The  builder,  therefore,  must  be  of  extraordinarily  high  ability 
and  handle  the  work  from  a  professional  standpoint  rather  than  to  get 
what  he  can.  Provision  in  the  contract  for  incentives  for  reduction  of 
cost  and  time  may  remove  many  of  the  uncertainties  of  the  owner. 

Abnormal  Conditions  Today — Shortage  of  Housing. — Certain  striking 
features  in  the  situation  today,  which  may  be  considered  briefly  at  this 
point,  are  more  or  less  temporary  in  nature,  and  are  to  be  charged  to  the 
abnormal  conditions  caused  by  the  war. 

The  outstanding  fact  in  the  building  industry  during  recent  months 
has  been  the  lack  of  work.  The  loss  in  wages  at  present  from  this 
cause  probably  amounts  to  half  a  billion  dollars  per  year. 

In  Figure  2  the  values  of  the  various  classes  of  construction  work  for 
the  entire  country  from  1915  to  1921,  are  represented  as  percentages  of 


56 


WASTE  IN  INDUSTRY 


1915  values.  Actual  footage  constructed  is  represented  also.  It  will  be 
noted  that  while  the  value  of  production  in  succeeding  years  greatly 
exceeded  the  1915  figures,  the  square  footage  or  real  measure  of  value 
approached  the  1915  figures  in  1918,  and  the  1921  total  estimated  on  the 
basis  of  the  average  for  the  first  months  of  the  year  will  fall  far  behind 
1915.  The  increase  in  the  unit  cost  per  square  foot  is  indicated  by  the 
difference  between  the  curve  and  the  height  of  the  various  columns.  The 
total  shortage  of  housing  in  1921  is  indicated  in  the  lower  curve  of  Figure 
2,  and  amounts  to  53%  of  the  total  footage  constructed  in  1915.  To 
this  percentage  must  be  added,  if  we  consider  the  footage  constructed  in 


FIG.  2. — Per  Cent  of  Construction  Work  in  Various  Classes  for  the  Entire  Country 
1915  to  1921  Based  on  1915  as  100  Per  Cent 

1915  as  equal  to  the  requirements  of  that  year,  7|%  which  represents  the 
increment  required  to  cover  the  increase  in  population.  Figure  3  repre- 
sents the  housing  shortage  existing  in  the  city  of  Philadelphia. 

The  need  for  building  is  most  evident.  The  costs  are  so  high,  however, 
that  the  householder  cannot  afford  to  buy,  nor  can  the  banker  loan 
money  because  of  the  danger  of  loss  through  the  inevitable  fall  in  prices. 

Abnormal  Cost  of  Financing. — The  high  cost  of  labor  and  materials 
in  1920  and  1921  prohibited  bankers  from  loaning  money  on  ordinary 
building  and  dwelling-house  construction.  They  reasoned,  and  correctly, 
that  the  price  of  materials  and  labor  would  drop  so  that  buildings  erected 
at  a  later  date  would  cost  less,  thus  causing  a  fall  in  the  selling  prices. 
Added  to  this  have  been  the  income  tax  conditions,  so  that  the  funds  which 
were  at  one  time  available  for  mortgages  have  been  forced  into  tax-exempt 
securities.  Notwithstanding,  therefore,  the  shortage  of  housing  and  the 


THE  BUILDING  INDUSTRY 


57 


need  for  new  construction,  the  actual  work  going  on  has  fallen  to  a  remark- 
ably small  figure  and  this  in  turn  has  been  reflected  in  unemployment. 

In  certain  cases  advantage  has  been  taken  of  the  conditions.  The 
Operatives'  Builders  Association  of  one  of  our  large  cities,  in  a  pamphlet 
recently  published,  states  that  it  is  generally  necessary  to  pay  a  mort- 
gage broker  a  commission  of  from  2  to  5%  for  placing  well  secured  mort- 
gages, while  for  second  mortgages  placed  with  building  associations,  it 
has  become  a  custom  to  pay  a  commission  of  5  to  10%. 


,/x 

ip.ooo 

Cumulative  Total  Scale  of  Permits  since  Jan.lst.l9ll  Z4,OOODwelHngs 

xx" 

x  ' 

/ 

7~ 

?779 

T 

55,000 
50,OOC 
45,00 
4000C 

nx" 

9000 
8000 
7000 

IGOOO 

£,5000 

<t^x  ["I          JJ-^^  TotalfyrlOlfears 
«P  v-      U  vT  1/7 

.vlk>---^  *Sw 

0^r|/^7/^ 

NORMAL  R/ITE-7400  PER  YEAR 

gr 

55,00( 
30,00( 

2.5  00( 

eo,ooc 

5,000 

X? 

m                  / 

/ 

\    ' 

^x 

o  3000 
7000 
1000 
0 

i^ 

^TL 

1 

5000 
0 

L 

id 

19  1            191?          1915           191*          1915           1916          1917           1918          1919          1920 

FIG.  3. — Philadelphia.     Two-  and  Three-story  New  Dwelling  Permits  1911  to  1920 
Incl.,  Showing  a  Shortage  of  17,000  Houses  on  January  1,  1921. 

53,000  permits  in  10  years,  population  increase  350,000  or  35,000  per  year. 
Average  number  people  per  home  in  Philadelphia  =  4.7. 

35,000-^-4.7  =  7447  permits  per  year. 
Average  1911-1916  =  6786. 
1917-1920  =  2515. 

Philadelphia  needs  a  1921  home  building  program  of  24,000  homes  to  keep  pace  with  her  rate  of 
progress  as  a  "  City  of  Homes." 

Curve  reproduced  from  curve  made  by  Wm.  B.  Ferguson  and  W.  B.  Hays,  Consulting  Engineers, 
Phila.,  Pa. 


Again  we  have  the  statement  of  a  contractor  operating  in  a  Southern 
city:  "  With  the  present  rate  of  6%,  no  National  Bank  is  going  to  take 
business  of  this  character  without  making  a  profit.  In  order  to  make  the 
profit,  they  must  charge  a  bonus  or  a  commission,  which,  in  both  cases, 
is  usually  2|%  and  where  they  find  it  possible,  they  charge  both,  which 
makes  the  money  cost  the  borrower  not  less  than  11%.  These  loans  are 
of  course  on  a  four  months'  basis  and  the  same  bonus  and  commission  is 
charged  for  renewal.  The  cost  to  the  borrower  would  be,  therefore, 


58 


WASTE  IN  INDUSTRY 


6%  for  the  use  of  the  money,  plus  the  bonus  and  commission  for  the 
original  loan  and  two  renewals  at  5%  each — a  total  of  21%  per  annum." 
Inefficiency  of  Labor. — Much  has  been  said  in  1921  of  the  inefficiency 
of  building  labor  during  the  last  few  years.  However,  except  where 
effective  management  with  well-defined  standards  has  been  in  operation, 
there  have  been  similar  complaints  throughout  the  country  in  all  indus- 
tries. This  inefficiency  has  been  due  to  abnormal  conditions.  Briefly, 
these  conditions  may  be  outlined  as  follows: 

(a)  The  war  necessitated  the  calling  into  the  ranks  of  skilled  workers  and  into  the 
foreman  class  men  unfitted  by  character  or  training  for  their  jobs.  The  demand  con- 
tinued to  exceed  the  supply,  resulting  in  bidding  for  men  and  boosting  of  wages. 

(6)  Because  of  the  unprecedented  demand,  organized  labor  forced  concessions  not 
only  as  regards  increases  in  wages,  which  were  usually  justified  by  the  increased  cost  of 
living,  but  also  as  regards  working  rules  which  led  in  many  cases  to  curtailment  of  pro- 
duction. The  speed  needed  on  government  work  to  win  the  war,  with  the  lessened  care 
for  cost  engendered  by  the  cost-plus  contract,  resulted  in  less  effective  operation. 
The  men  naturally  became  accustomed  to  this  inefficient  method  of  working  and  it 
furnished  in  one  sense  a  standard  for  future  efforts. 

Relative  production  or  labor  efficiency  during  the  last  few  years, 
based  on  careful  estimates  of  contractors  who  have  actually  recorded 
data,  is  shown  by  the  curve  in  Figure  4.  The  increase  in  wages  and  in  the 
cost  of  living  in  Massachusetts  are  also  shown. 


.._  -il  coordinates  be-rw?en  full  and 

broken  lints  represent  increase  in  per  cent 
.  of  Building  costs  due  to  increase  In  wages  plus 
decrea  e'ffi  efficiency. 


FIG.  4. — Increase  in  Cost  of  Living,  Increase  in  Labor  Costs,  and  Decrease  in  Efficiency 
of  Labor,  Using  1914  as  a  Base. 

With  the  depression  in  business,  however,  and  the  lessened  demand 
for  all  kinds  of  labor,  the  average  production  in  all  industries  is  again 
approaching  normal.  Certain  contractors  are  again  basing  estimates 
on  the  assumption  that  labor  is  normally  efficient.  The  improvement 
is  in  part  due  to  the  weeding  out  of  misfits  in  both  labor  and  management. 
The  diagram,  Figure  5,  shows  how  jobs,  started  respectively  in  March, 


THE  BUILDING  INDUSTRY 


59 


May  and  November,  1920,  showed  increased  efficiency  of  the  men,  as 
indicated  by  saving  in  cost  below  the  estimate. 


SAVING 


JOB  NO.  J 


I 

OVER-RUN 

|          I 
Job  started  tl-ll-20 


JOB  HO. 


'  starred  3-8-20 
'    i  12-18-20 


10     25       20       15 


505 

Percent 


10       15       20       £5     30 


FIG.  5. — Tendency  of  Labor  Efficiency  to  Increase  as  the  Supply  Increases.    Jobs  Nos. 
1,  2  and  3  Similar  Concrete  Jobs. 

Job  No.  3  started  in  November,  1920,  when  labor  had  become  plentiful,  due  to'falling  off  of  work 
so  that  old  employees  could  be  utilized. 


The  Causes  of  Waste  Analyzed.— The  principal  sources  of  waste  in 
the  building  industry,  already  noted,  may  be  set  down  specifically  as 
follows : 

I.  Irregular  employment,  due  to : 

1.  Seasonal  fluctuations. 

2.  Bad  weather. 

3.  Strikes  and  lockouts. 
II.  Inefficient  management: 

1.  Failure  to  furnish  continuity  of  employment. 

2.  Failure  to  plan  work  in  sufficient  detail. 

3.  Lack  of  proper  schedules  to  allow  proper  coordination  ot  scheduling,  pur- 

chasing, delivery,  with  job  requirements. 

4.  Lack  of  standards  and  adequate  cost  methods  as  a  means  of  checking  pro- 

duction. 

5.  High  labor  turnover. 

6.  Failure  to  use  proper  amount  or  type  of  equipment. 

7.  General  failure  to  develop  and  use  a  greater  amount  of  mechanical  equip- 

ment. 

8.  Waste  of  material  through  careless  handling  and  improper  plant  operations. 
///.  Wasteful  Labor  Regulations'. 

1.  Requiring  skilled  men  to  do  work  that  could  be  performed  by  unskilled. 

2.  Restricting  individual  incentive  through  requiring  uniform  minimum  wages. 

3.  Limiting  the  number  of  apprentices. 

4.  Excessive  reduction  of  working  hours. 

5.  Restricting  output  by  prohibiting  the  use  of  labor-saving  devices. 

6.  Jurisdictional  regulations. 


60  WASTE  IN  INDUSTRY 

In  addition  to  these  three  main  groups,  there  are  secondary  sources 
of  waste  which  are  a  result  of  customs  or  conditions  prevailing  throughout 
the  industry.  This  group  is  as  follows : 

1.  Failure  of  architects  to  furnish  check  plans  and  specifications. 

2.  Duplication  of  labor  in  estimating  and  often  in  designing. 

3.  Lastly,  accidents  which  are  particularly  important  in  the  building  industry 
because  of  the  extra-hazardous  nature  of  the  work. 


I.  IRREGULAR  EMPLOYMENT 

Estimated  Loss. — The  large  fluctuations  in  the  number  of  men  employed 
by  representative  contractors,  indicating  also  the  great  fluctuation  in  the 
volume  of  business  carried  on,  are  shown  in  Figures  6  and  7.  An  average 
of  all  of  these  fluctuations  is  plotted  at  the  bottom  of  Figure  7.  The 
average  curve  follows  in  a  general  way  the  individual  curves  and  indicates 
the  extent  of  unemployment  during  the  various  periods.  In  normal 
times  when  a  man  is  released  from  one  job,  he  seeks  employment  with 
another  contractor.  The  curves,  therefore,  do  not  necessarily  follow  the 
employment  of  any  one  group  of  men.  It  is  not  unusual  for  a  man  to  be 
employed  by  several  contractors  in  a  year.  Unemployment  due  to  all 
causes  in  the  building  trades  in  Massachusetts  is  further  shown  in  Figure 
8.  If  we  assume  these  figures  to  be  representative  of  the  entire  country, 
and  if  one-half  of  this  unemployment  could  have  been  eliminated,  the 
value  to  the  building  industry  or  its  wealth  to  the  country  would  have  been 
increased  as  follows: 

1915 $106,000,000 

1916 91,000,000 

1917 113,000,000 

1918 85,000,000 

1919 141,000,000 

1920 192,000,000 

Lost  Time  in  Different  Trades. — Representative  average  conditions 
in  the  building  trades  in  Philadelphia  and  vicinity  are  shown  in  chart  in 
Figure  9.  The  lost  or  wasted  time  exclusive  of  Sundays,  Saturdays,  and 
holidays  is  shown  clearly  by  the  heavy  black  lines,  one  line  for  each  trade. 
The  values  also  are  listed  in  the  table  on  page  64  and  the  percentages 
of  lost  time  are  given. 


THE  BUILDING  INDUSTRY 


Gl 


\  1 

/ 

V 

c 

3 

\ 

/ 

V 

\ 

Pi 

tons 

/ver 

'/<w 

me 

«*' 

?/*,. 

rf/W 

5  \ 

/ 

\ 

1 

$ 

\ 

1 

| 

\ 

\ 

/ 

a 

HTff 

icrc 

?  ,Vo 

/ 

y 

/i  ,Y/ 

Sf 

t 

-V 

N' 

I 

\^ 

f\ 

/ 

\  i  i  i  § 

riTTSTTI"*  11  S  *  1  t  i  j 

<-'-— -1918 ->k 1919 *K 19eO H 

FIG.  6a. — Monthly  Fluctuation.  Number  of  Men  Employed  in  Building  Trades  for 
Years  1914-1916-1918-1919-1920.  Figures  Taken  from  Typical  Contractor's 
Records, 


4-60 


-1914 >*<- 


A 


CONTRACTOR  No.  6 


FIG.  66. — Monthly  Fluctuation  of  Labor  Employed  in  Building. 


FIG.  6c. — Monthly  Fluctuation  of  Labor  Employed  in  Building  Trades. 


62 


WASTE  IN  INDUSTRY 


CONTRACTOR  *3Z 


a 


->!<•. 1916 


1  1  i  i  m  i  i 


1918  —  ^- 


IM  IJ 

: 1920    --— >| 


FIG.  7a. — Monthly  Fluctuation  of  Labor  Employed  in  Building  Trades. 


FIG.  76. — Monthly  Fluctuations  of  Labor  Employed  in  Building  Trades. 


FIQ.  Ic. — Monthly  Fluctuations  of  Number  of  Men  Employed  in  Building  Trades, 
by  Per  Cent.  The  Greatest  Number  Employed  in  any  Particular  Year  is  Taken 
as  100%  for  that  Year. 


THE  BUILDING  INDUSTRY 


63 


FIG.  8. — Graph  Showing  Unemployed  in  Building  Industry,  by  Quarters  for  1908  to 

1920  Inclusive. 

(Figures  compiled  by  Massachusetts  Bureau  of  Statistics.) 


Days 

FIG.  9. — Representative  Average  Conditions  in  Building  Trades  in  Philadelphia  and 

Vicinity. 


WASTE  IN  INDUSTRY 


TABLE  SHOWING  ACTUAL  DAYS  WORKED  IN  COMPARISON  WITH  EFFECTIVE  WORKING 
DAYS  POSSIBLE  FOR  VARIOUS  TRADES 


Trade 

Effective  Working 
Days  Possible 

Average  Days 
Worked 
Per  Year 

Per  Cent 
of 
Time  Lost 

Plasterers 

254 

170 

33 

Painters 

254 

182 

28 

Paper  Hangers  
Plumbers  

254 
271| 

182 
200 

28 
26 

Iron  Workers  

273^ 

150 

45 

Bricklayers 

275 

182 

34 

Stone  Masons 

275 

185 

33 

Carpenters 

280' 

200 

29 

Electricians  

280 

216 

23 

Elevator  Constructors  
Engineers 

280 
280 

216 
200 

23 
29 

Firemen     

280 

200 

29 

Lathers  
Composition  Roofers  
Slate  and  Tile  Roofers  
Sheet  Metal  Workers 

280 
280 
280 
280 

190 
182 
170 
185 

32 
35 
39 
34 

Stone  Cutters  
Asbestos  Workers  
Granite  Cutters  
Cement  Finishers  
Plasterers'  Helpers  

280 
281 

281 
281 
281 

180 
185 
180 
176 
180 

36 
34 
36 
37 
36 

Riggers 

281 

175 

38 

Steamfitters 

281 

180 

36 

Upholsterers  
Laborers  

281 

281 

225 
217 

20 
23 

Tile  Setters'  Helpers  
Tile  Setters  

282 
282 

200 
200 

29 
29 

Average 

275 

189 

31 

Saturday  half-holidays  or  full  holidays,  as  the  case  may  be,  are  not  included. 

The  days  at  work,  by  these  records,  average  189  per  year  for  the  vari- 
ous trades.  The  average  of  estimates  reported  to  us  by  various  con- 
tractors is  210  working  days  per  year.  These  figures  are  as  nearly  equal 
as  can  be  expected.  Over  half  of  the  lost  time,  it  is  estimated,  is  due  to 
bad  weather  and  the  balance  chiefly  in  waiting  for  or  looking  for  work. 

Distribution  of  Lost  Time  through  the  Year. — The  chart  showing 
the  average  monthly  and  yearly  distribution  of  bricklayers'  time  is  shown 
in  Figure  10.  Note  the  heavy  black  lines  showing  lack  of  employment 
in  the  winter  months.  The  difference  in  the  lengths  of  the  months  is 
indicated  by  the  jogs  at  the  bottom  of  the  chart. 


THE  BUILDING  INDUSTRY 


65 


Extreme  Example  of  Labor  Turnover. — One  man,  in  the  course  of  5£ 
years,  worked  for  76  different  contractors  and  was  hired  108  times.  His 
experience  was  as  follows: 

1913 —Worked  for  9  different  contractors,  hired  12  times — 9  months. 

1914— Worked  for  11  different  contractors,  hired  18  times. 

1915 — Worked  for  18  different  contractors,  hired  28  times. 

1916 — Worked  for  19  different  contractors,  hired  22  times. 

1917 — Worked  for  11  different  contractors,  hired  14  times — 9  months. 

1920 — Worked  for  8  different  contractors,  hired  13  times. 

This  condition  must  certainly  keep  in  the  mind  of  a  man  the  thought 
of  where  the  next  job  will  be,  and  the  worry  and  uncertainty  must  be 
reflected  in  his  daily  output. 

••~]  Total  Possible  Effective  WorkingTi'me    ••  Parr  of  Effective  Time  Lost  or  Waste  to  be  Eliminated 
|       |  Average  Effective  Working  Time  gj|  Sundays  Hfflj  Holidays 

i     g     I    l     I     l 


°2<3S 9 °S PSSosgglgggg 

Days 

FIG.  10. — Monthly  and  Yearly  Distribution  of  Bricklayers'  Time. 
(Representative  Average  Conditions  in  Philadelphia  and  Vicinity.) 

Contractors  have  given  the  effect  of  labor  turnover  little  consideration 
In  construction  work  this  is  particularly  hard  to  determine,  especially 
as  the  actual  percentage  of  turnover  constantly  varies  as  the  building 
progresses'  and  the  number  of  men  is  increased  and  then  diminished.  Men 
quit  because  of  the  type  of  work,  risk  involved,  unfair  treatment  by  fore- 
men, and  so  on.  They  are  discharged  because  of  lack  of  work,  incom- 
petence, laziness,  causing  trouble,  or  because  better  men  are  available. 
The  labor  turnover  and  service  record  of  one  contractor,  based  on  an 
average  of  four  years,  1917,  1918,  1919,  and  1920,  is  shown  in  Figure  11, 
with  causes  of  quitting.  This  is  given  more  in  detail  and  for  each  year 
in  tabular  form  in  Figure  12.  The  losses  both  to  employers  and  to  men  by 
this  enormous  turnover  are  evident. 


66 


WASTE  IN  INDUSTRY 


We  believe  these  figures  to  be  fairly  typical  of  conditions  which  existed 
during  the  years  mentioned.     The  lower  values  indicate  what  may  be 


FlG    11 — Labor  Turnover  and  Service  Record  of  One  Contractor.     Average  of  Four 
Years  1917  to  1920. 


expected  in  more  normal  years.  Note  the  high  percentage  of  men  quit- 
ting of  their  own  accord,  as  compared  with  those  dismissed  and  laid  off. 
Since  labor  is  responsible  in  a  large  measure  for  the  number  dismissed  due 


LABOR   TURNOVER 


COLUMN  NO. 


56  7 


.eft  of  Own  Accord 


9  10  II  12  !• 


! 


Dismisse 


LaieTOff 


- 

^ 

^i§ 
30  31  32  33  34  35  36  37 


Weeks 


1917 


1918 


To-tal 


PerCenJ 


1919 


Total 


terCent 


FIG.  12. — Labor  Turnover. 


to  such  causes  as  incompetence  and  disobedience  (see  Figure  12),  a  large 
percentage  of  the  figures  shown  in  column  25  should  be  added  to  the 


THE  BUILDING  INDUSTRY  67 

per  cent  quitting,  which  represents  the  largest  waste  factor  in  labor  turn- 
over. It  must  be  borne  in  mind  that  the  large  floating  element  found  in 
the  building  industry  is  a  problem  which  confronts  the  contractors,  and 
is  responsible  in  part  for  the  high  number  of  resignations  shown  in  column 
16.  The  contractor's  direct  responsibility  for  men  laid  off  is  indicated  in 
column  29. 

Lack  of  Employment  Managers. — Employment  managers  are  rarely 
employed  even  upon  the  largest  jobs,  and  "hiring  and  firing"  is  at  the 
will  of  the  foreman  or  superintendent.  Good  men  are  lost  through  lack  of 
sympathy  on  the  part  of  the  foreman,  or  ill  will  is  often  developed  in  the 
workman  by  the  foreman's  lack  of  tact  in  directing  the  gang. 

Reducing  Seasonal  Unemployment. — Although  efforts  toward  reducing 
seasonal  unemployment  have  been  local  and  often  spasmodical,  recent 
developments  and  conferences  have  shown  the  possibilities  of  vast  improve- 
ment. The  means  of  bringing  about  a  reduction  of  seasonal  unemploy- 
ment may  be  outlined  as  follows: 

1.  Allowance  of  a  small  margin  of  profit  for  both  labor  and  capital  during  winter 

months. 

2.  Development  of  methods  of  conducting  the  work  in  cold  weather. 

3.  Arrangement  of  work  to  provide  indoor  operations  in  cold  and  stormy  weather. 

4.  Organization  of  a  clearing  house  for  co-ordination  of  activities. 

5.  Increasing  the  usefulness  of  employment  bureaus. 

6.  Educating  the  public. 

Contractors  must  prove  to  the  public  that  they  can  carry  on  operations 
during  the  winter  period  as  economically  and  substantially  as-  during 
other  periods  of  the  year.  To  do  this,  contractors,  labor,  transportation, 
and  material  men  in  a  locality  must  get  together  and,  after  joint  study  of 
the  situation,  agree  to  reduce  profits  and  wages  sufficiently  to  offset  the 
increased  cost  of  carrying  on.  work  in  winter  months.  Much  can  be 
developed  to  improve  conditions.  Even  now  concrete  work  is  carried 
on  in  winter  with  proper  precautions.  It  is  now  common  practice  to  use 
a  staging  enclosed  in  canvas  for  bricklayers  working  in  the  winter  time. 

With  such  practices  in  operation  the  contractor  can  figure  on  work 
at  the  same  price  throughout  the  year,  thus  stimulating  winter  construc- 
tion and  lessening  unemployment  due  to  this  seasonal  feature. 

A  plan  covering  the  features  outlined  above  has  been  presented  by 
A.  P.  Greenfelder,  Chairman  of  the  Committee  on  Methods,  to  the 
Associated  General  Contractors  of  America  for  consideration. 

A  few  contractors  by  thorough  organization,  by  developing  a  sales 
department,  and  by  making  a  specialty  of  repair  work  along  with  regular 
construction,  have  found  it  practicable  to  maintain  an  appreciable  part 
of  their  force  continually  through  the  year.  Most  contractors,  on  the 


68  WASTE  IN  INDUSTRY 

other  hand,  pay  absolutely  no  regard  to  the  worker  as  an  individual. 
Men  are  taken  on  as  required,  and  discharged  at  a  minute's  notice. 

A  General  Bureau  for  Clearing  Work. — The  crying  need  is  for  more 
effective  coordination  of  activities.  The  "  Philadelphia  Plan,"  developed 
by  the  Building  Trades  Council  under  the  leadership  of  D.  Knickerbacker 
Boyd,  advocates  the  establishment  of  a  central  bureau  through  which 
voluntarily  all  construction  programs  in  the  territory  should  be  cleared, 
including  national,  state,  municipal,  and  private  work.  This  bureau 
would  furnish  a  means  for  coordinating  activities  so  that  different  jobs 
would  dovetail  in  with  one  another,  and  would  assist  in  allocation  of  mat.. ri- 
als. A  constant  labor  survey  would  be  one  feature  of  the  project,  v  ~>ile 
employment  bureaus  would  assist  in  the  placing  of  applicants  to  the  .  -st 
advantage.  An  important  feature  of  this  plan  is  the  stress  laid  upon  the 
education  and  training  of  the  workmen  in  the  various  trades.  Such 
education  and  training  results  inevitably  in  increased  production 
and  increased  efficiency.  A  part  of  the  program  has  been  under  way 
since  the  fall  of  1920. 

The  education  of  the  public  is  vital  to  a  sensible  distribution  of  wor' 
throughout  the  year.  This  applies  equally  to  industrial,  public,  and 
residential  construction  and  to  household  repairs  and  maintenance. 
Instead  of  crowding  our  main  construction  work  into  seven  or  eight 
months,  all  that  can  be  deferred  from  the  busy  to  the  mere  idle  season 
should  be  so  scheduled.  Owners  making  interior  repairs  or  slight  addi- 
tions should  be  encouraged  to  have  this  work  done  in  the  off-peak  season. 
Old  buildings  to  be  demolished  to  make  room  for  new  ones  should  be 
torn  down  in  cold  weather  in  advance  of  the  new  construction,  instead  of 
waiting,  as  is  often  done,  until  the  new  building  ought  to  be  under 
way. 

Real  estate  dealers  lease  apartments  usually  in  October  and  do  all 
redecorating  work  and  repairing  at  this  time.  An  architect  in  New  York 
City  has  stated  that  some  25,000  painters  and  paper-hangers  are  needed 
during  this  brief  period,  while  normally  only  5,000  men  are  required. 

With  a  central  bureau,  under  the  auspices  of  the  employers,  the  work- 
men, and  the  public,  these  and  many  other  things  would  be  studied  with 
effective  results. 

Waste  From  Strikes  and  Lockouts. — The  strike  is  one  of  the  great 
economic  wastes  to  be  found  in  the  building  industry.  The  waste  to  the 
men  engaged,  the  contractor,  and  the  public  is  hard  to  estimate. 

The  major  causes  of  strikes  are  occasioned  by  demands  for  increase 
in  wages,  recognition  of  the  union,  decrease  in  working  hours,  and  by 
jurisdictional  disputes. 

Incidental  to  these  causes  and  often  aggravating  them  are  the  working 
conditions,  while  in  almost  every  case  the  prime  factor  is  the  lack  of 


THE  BUILDING  INDUSTRY 


understanding  and  failure  of  the   employers  and  the   workers  to   get 
together. 

As  shown  in  the  table  on  this  page,  the  number  of  strikes  and  lockouts 
occurring  in  the  building  trades  increased  from  275  in  1914  to  442  in  1919, 
an  increase  of  60%.  This  increase  is  accounted  for  in  part  by  the  greater 
demand  for  labor  in  1919,  which  inevitably  makes  the  requirements  of 
workmen  more  exacting  and  arbitrary.  Of  the  1919  figure,  442,  only  18 
or  4%  are  listed  as  lockouts,  so  that  the  waste  due  to  lockouts  is  relatively 
small. 

STRIKES  AND  LOCKOUTS  TN  THE  BUILDING  INDUSTRY  IN  THE  UNITED  STATES 

(Information  from  U.  S.  Bureau  of  Labor  Statistics.) 

Strikes 


Building  Trades 

1914* 

1915 

1916 

1917 

1918 

1919 

Carpenters  
Plumbers  and  Steamfitters  .  . 
Paper  Hangers  and  Painters  . 
Sheet  Metal  Workers 

35 
83 
61 
13 

42 
34 
20 
21 

73 

52 
45 
20 

98 
53 
41 
32 

76 
71 

58 
45 

84 
53 
75 
17 

Building  Laborers  and  Hod 
Carriers 

53 

72 

27 

48 

Inside  Wiremen  

9 

20 

32 

33 

45 

29 

Structural  Iron  Workers  .... 
Ail  others 

74 

67 

23 

78 

15 
103 

19 
75 

12 
124 

275 

204 

376 

447 

416 

442 

Lockouts 


Building  Trades 

1914* 

1915 

1916 

1917 

1918 

1919 

Carpenters  

8 

2 

3 

3 

4 

Plumbers  and  Steamfitters  .  . 

9 

1 

4 

3 

1 

Paper  Hangers  and  Painters  . 

4 

4 

1 

3 

Sheet  Metal  Workers  

2 

1 

2 

Building  Laborers  

1 

2 

Inside  Wiremen 

4 

2 

4 

1 

Structural  Iron  Workers  .... 

1 

1 

All  others  

4 

8 

4 

5 

8 

27 

18 

21 

16 

18 

*  Includes  Lockouts. 

Preventable  Waste. — In  the  year    1920,   according  to   the   Massa- 
chusetts Department  of  Labor  and  Industries,   138,519  working  days 


70 


WASTE  IN  INDUSTRY 


were  lost  in  the  State  due  to  strikes.  If  we  apply  the  Massachusetts  rate 
to  the  entire  industry  it  would  represent  a  waste  of  some  3,000,000  days 
per  year.  As  an  illustration  of  the  wastefulness  of  strikes,  attention  is 
called  to  the  labor  trouble  in  the  city  of  Boston  during  the  first  four 
months  of  1921  involving  20,000  building  mechanics. 

In  the  following  table  is  represented  the  experience  of  the    labor 
unions  in  another  large  city. 

TIME  LOST  DUE  TO  GENERAL  STRIKES — BUILDING  TRADES,  PHILADELPHIA 


Trades 

1916 

1917 

1918 

1919 

1920 

Asbestos  Workers  

Only  one 

strike  in 

10  years. 

Electrical  Workers  

Stone  Masons  
Engineers  and  Firemen  

0 

0 

No  time 
No  time 

0 

lost  in  10 
lost  in  10 

10  days 
(500) 
years, 
years. 

0 

No  time 

lost  in  15 

years 

Plasterers'  Helpers 

No  time 

lost  in  15 

years 

Cement  Finishers 

6  weeks 

0 

2  weeks 

0 

4  weeks 

Painters  and  Paper  Hangers  .... 
Plumbers  and  Steamfitters  
Riggers 

(150) 
0 

0 
7  weeks 

0 

9  weeks 
(1,000) 
4  weeks 

(150) 
4  weeks 
(3,000) 
0 

4  weeks 

0 
0 
3  weeks 

(300) 
0 

0 
4  weeks 

Slate  and  Tile  Roofers  
Sheet  Metal  Workers  

Tile  Setters 

(200) 

2  weeks 
(150) 

(200  ) 
No  time 
0 

No 

(200) 
lost  since 
0 

strikes  in 

(300) 
1911. 
9  weeks 
(400) 
10  years 

(300) 
0 

Carpenters 

o 

o 

o 

o 

Laborers  

0 

0 

0 

0 

(7,000) 
5  weeks 
(8,000) 

NOTE:  Numbers  in  parentheses  show  number  of  men  involved  but  it  must  be 
remembered  that  usually  it  is  a  diminishing  number  and  the  full  number  does  not  apply 
to  the  entire  period. 

If  the  greatest  cause,  the  demand  for  an  increase  in  wages,  could  be 
eliminated,  strikes  as  a  factor  of  waste  would  shrink  into  insignificance. 
The  remedy  that  suggests  itself  is  co-operation.  Management  and  labor 
must  forget  the  sore  spots  of  past  conflicts  and  through  whole-hearted 
cooperation  fix  by  proper  studies  a  minimum  wage  to  correspond  with  a 
standard  amount  of  production,  with  additional  compensation  for  addi- 
tional output.  This  would  furnish  an  incentive  to  the  men  and  would  give 
recognition  to  deserving  mechanics.  Unions  must  co-operate  to  the  extent 


THE  BUILDING  INDUSTRY  71 

of  eliminating  the  minimum  flat  rate  for  all  mechanics  of  a  trade,  and  to  the 
extent  of  modifying  the  restriction  that  forbids  mechanics  to  accept  piece 
work.  With  definite  standards  fixed  and  with  the  co-operation  of  both 
parties  fair  incentives  can  be  introduced. 

The  Philadelphia  Plan. — The  most  encouraging  sign  in  the  elimination 
of  the  above  causes  of  waste  is  found  in  what  is  known  as  the  "  Philadel- 
phia Plan  "  put  forth  by  the  labor  element  of  that  city.  This  is  as  follows: 

(a)  The  organization  through  associations,  groups,  or  committees,  where  such  do  not 
now  exist,  of  each  employing  branch  of  the  building  industry  in  number  at  least  equal  to 
the  nineteen  represented  in  the  Council  of  the  Associated  Building  Trades  plus  one  more 
constituting  the  carpenters  not  at  present  associated,  and  one  for  each  group  or  com- 
mittee of  workers  desiring  representation. 

(6)  The  joining  together  of  all  these  associations,  groups,  or  committees  into  a  per- 
manent, well  organized  Building  Trades  Employers'  Association  with  offices  or  officers. 

(c)  The  appointment  in  each  branch  of  the  building  industry  of  committees  of 
employers.     These  committees  to  consist  of  one  main  committee  in  each  branch.    This 
committee  to  be  divided  into,  say,  four  sub-committees  of  about  three  members  each  to 
meet  with  and  function  with  like  committees  from  the  Council  of  the  Associated  Building 
Trades  or  with  committees  of  any  branch  of  labor  in  the  building  industry  not  organized 
or  not  connected  with  said  Council. 

Each  of  the  sub-committees  suggested,  if  consisting  of  six  members  as  indicated, 
to  have  a  seventh  member  as  chairman,  which  member  shall  be  an  Architect  or  an 
Engineer  selected  by  vote  of  the  other  six  members.  The  chairman  of  the  main  com- 
mittee in  each  industry  and  a  secretary  to  be  selected  from  among  the  chairmen  of  the 
sub-committees. 

(d)  The  sub-committees  of  the  main  committee  now  suggested  for  your  considera- 
tion and  for  later  joint  deliberation  are: 

1.  Committee  on  Education  of  Apprentices; 

2.  Committee  on  Information  for  Journeymen; 

3.  Committee  on  Working  Conditions; 

4.  Committee  on  Materials; 

Heading  up  committee  to  constitute  the  tribunal  or  council  of  the  building  industry 
for  the  Philadelphia  territory: 

To  consist  of  one  representative  from  each  of  the  main  committees  in  the  employers' 
organizations  or  groups,  not  less  than  nineteen,  each  selected  by  vote  of  the  main  com- 
mittee in  each  branch  of  the  industry : 

And  of  one  representative  similarly  chosen  from  the  organization  or  groups  of  the 
employed, — not  less  than  nineteen  in  all. 

The  officers  of  this  tribunal  would,  it  is  suggested,  consist  of  a  chairman, 
two  vice-chairmen,  a  recording  secretary — who  would  also  act  as  treasurer 
— and  a  corresponding  secretary. 

The  offices  would  be  filled  as  follows :  The  two  secretaries  to  be  the 
secretaries  of  the  Building  Trades  Employers'  Association  and  of  the 
Council  of  Associated  Building  Trades;  the  two  vice-chairmen  to  be 
respectively  the  presidents  of  these  two  organizations;  the  chairman  to 
be  an  arphjl&ot  selected  by  the  entire  committee. 


72  WASTE  IN  INDUSTRY 

This  tribunal  or  council  would  become  the  strategic  board  for  the 
consideration  and  possible  solution  of  all  problems  affecting  the  building 
industry  as  a  whole  and  their  relation  to  all  factors  in  the  community.  It 
would  have  power  to  elect  and  delegate  certain  authority  to  an  executive 
committee;  to  formulate  rules  of  procedure,  and  to  assign  to  any  sub- 
committees of  the  tribunal  certain  prescribed  duties.  Among  these  would 
be  the  adjustment  of  matters  relating  to  conditions  which  might  lead  to 
strikes,  lockouts,  and  other  economic  ills. 

II.     WASTE  IN  MANAGEMENT 

It  has  been  shown  that  many  of  the  factors  classed  as  "  labor  wastes  " 
originate  in  a  greater  or  lesser  degree  from  inefficiency  of  management. 
As  it  is  impossible  to  maintain  an  absolute  division,  these  and  other 
sources  of  waste  are  again  discussed  below,  but  as  arising  from  strictly 
management  sources. 

The  problems  of  construction  management  involve  not  merely  the 
taking  of  the  contract,  the  purchase  of  materials,  the  engaging  of  foremen 
to  handle  the  work,  they  involve  to  a  still  greater  degree  the  arranging  of 
the  work  of  the  different  trades,  the  scheduling  of  the  operation  and  of 
delivery  of  material,  the  planning  of  the  work  of  individuals  and  groups 
of  workmen,  the  design  and  maintenance  of  the  proper  equipment,  the 
maintenance  of  cost  records,  the  knowledge  of  what  constitutes  a  day's 
work,  definite  policies  of  employment  and  the  payment  of  the  workman 
in  accordance  with  the  performance.  All  of  these  things  arc  essentials 
in  well-managed  construction  operations. 

Lack  of  Forethought. — Attention  has  been  called  to  the  individuality 
of  each  contract  and  the  need  for  special  plans  to  handle  each  one.  The 
individual  contract  receives  insufficient  forethought.  The  need  for 
advance  analysis  of  all  details  of  the  job  is  little  appreciated.  The  nature 
of  the  work  itself,  the  relation  of  one  class  of  work  to  another,  the  need  for 
indicating  the  best  and  most  economical  time  for  starting  one  class  of 
work  following  another,  the  necessity  for  providing  proper  materials  in 
required  amounts  at  certain  times,  all  show  the  necessity  for  planning  in 
advance  of  performance. 

Advance  planning  is  conducive  to  expediting  performance,  amd  is  a 
means  of  insuring  performance  within  the  contracted  time.  Yet  it  is  a 
rare  exception  to  find  a  construction  job  planned  to  co-ordinate  the  vari- 
ous divisions  of  work  with  the  necessary  materials. 

The  Progress  Schedule. — As  indicating  what  can  be  done,  we  have  in 
mind  a  contractor — not  representative  of  the  class  as  a  whole,  we  regret 
to  say — who  after  making  a  thorough  study  of  conditions  as  to  both  the 
material  market/  and  the  site,  draws  up  in  conjunction  with  the  engineer  and 


THE  BUILDING  INDUSTRY  73 

the  man  who  is  to  handle  the  work  in  the  field,  a  detailed  progress  schedule 
on  which  all  future  operations  are  to  be  based,  such  as  that  indicated  in 
Figure  13.  The  schedule  is  checked  daily  and  lived  up  to.  On  the  basis 
of  this  progress  schedule  a  material  schedule  is  drawn  up  on  which  is 
indicated  dates  the  various  quantities  should  be  taken  off,  dates  to  order 
materials,  outside  shipping  date,  and  dates  on  which  the  various  materials 
should  be  delivered  to  the  job.  The  purchasing  department  has  a 
follow-up,  which  functions  to  assure  all  concerned  that  the  dates  in  this 
schedule  are  maintained.  The  field  superintendent  is  kept  in  touch  with 
all  items  by  ticklers  containing  latest  information  as  to  shipment,  etc., 
which  must  be  returned  immediately  upon  receipt  with  notations  as  to 
record  of  shipment  and  receipt  of  material;  thus  all  functions  are  coor- 
dinated and  rarely  is  a  job  delayed  or  held  up  for  want  of  materials. 

The  effectiveness  of  this  method  was  fully  demonstrated  during  the 
past  four  years  when  the  demands  for  material  was  unprecedented.  This 
contractor  was  spoken  of  as  being  "  lucky  "  and  "  fortunate  "  because 
jobs  went  along  with  normal  and  even,  at  times,  abnormal  speed,  whereas 
the  well-balanced  condition  was  due  wholly  to  thorough  planning. 

In  contrast  with  this  method  is  that  of  the  average  contractor  whose 
only  dates  ordinarily  are  those  of  starting  and  finishing,  and  who  largely 
regulates  deliveries  of  materials  by  visits  to  the  job,  or  through  advices 
received  from  the  job  superintendent,  stating  that  he  will  need  this  or 
that  at  such  a  time.  Such  a  method  of  planning  must  result  in  delaying 
the  job  for  want  of  material  or  at  other  times  in  burdening  the  job  by  an 
over-supply  of  material.  Frequent  lay-offs  result  in  dissatisfaction  of 
the  workmen,  loss  of  good  mechanics,  and  higher  labor  turnover. 

A  few  contractors  are  following  plans  somewhat  similar  to  those  out- 
lined above.  In  a  very  large  office  building  in  process  of  erection  a 
definite  schedule  is  laid  out  of  two  stories  per  week.  Brickwork,  is  run 
up  at  this  rate,  the  rest  of  the  work  following  at  the  same  pace.  The 
total  man-hours  each  day  for  each  trade  is  carefully  divided  into  classes 
of  work  and  daily  unit  cost  records  are  maintained. 

Going  further  back,  certain  contractors  have  built  up  sales  organiza- 
tions along  lines  similar  to  those  in  the  manufacturing  industries,  and 
fix  an  advertising  sales  budget  each  year.  Contractors  undoubtedly 
must  be  educated  to  set  aside  a  large  percentage  of  their  profits  to  be 
used  in  the  building  up  of  off-peak  business. 

Need  of  Planning  on  the  Job. — Daily  planning,  such  as  is  used  in  mod- 
ern factory  management,  has  been  applied  only  to  a  limited  extent  in  the 
building  industry.  Contractors  are  prone  to  leave  the  planning  of  their 
work  to  their  superintendents  or  often  to  their  foremen,  with  very  little 
means  to  co-ordinate  the  work  of  the  various  gangs.  Again,  it  is  to  be 
observed  that  "  rule-of-thumb  "  methods  are  still  employed  by  a  large 


THE  BUILDING  INDUSTRY  75 

number  of  contractors  in  carrying  on  their  work,  the  materials  on  hand 
governing  the  order  of  operations  to  a  large  extent.  We  find  an  occa- 
sional contractor  who  definitely  plans  the  work  for  each  day  and  in  addition 
arranges  for  daily  conferences  of  foremen  and  superintendent,  or  planning 
man,  to  discuss  the  operation  schedules  for  the  following  day  and  insure 
co-ordination.  On  form  construction  and  certain  other  phases  of  the 
work,  modern  shop  methods  are  followed.  Frequently  labor  costs  are 
cut  appreciably,  notwithstanding  the  extra  clerical  work  involved.  The 
advantages  of  such  plans  are  obvious,  for  the  men  move  at  the  finish  of 
an  operation  automatically  to  another,  and  materials  are  at  hand  for  the 
work;  thus  costly  conflicts  between  trades  are  avoided,  and  time  ordinarily 
wasted  by  gangs  in  waiting  for  the  foremen  to  determine  their  next  move 
and  to  locate  materials  is  saved.  Again,  on  those  well  planned  jobs 
a  "  knitting  list  "  of  jobs  to  be  done  in  bad  weather  is  maintained,  which 
tends  to  reduce  lay-offs  on  account  of  the  weather. 

It  is  the  opinion  of  the  chief  engineer  of  a  large  contracting  concern 
whose  company  now  plans  its  work  probably  to  a  greater  extent  than  any 
other,  that  there  is  still  a  vast  field  for  the  further  application  of  intensive 
planning,  which  will  result  in  the  saving  of  much  labor  now  wasted. 

Cost  Keeping  Methods  Inadequate. — Scarcely  two  contractors  have 
similar  methods  of  keeping  account  of  costs.  Few  keep  accurate  enough 
records  of  work  accomplished  by  the  workmen  to  furnish  an  approxima- 
tion of  the  unit  costs  from  day  to  day.  The  economies  to  be  derived  from 
accurate  cost  records  have  been  recognized  by  a  few  contractors  who 
will  be  found  among  the  leaders  in  the  industry.  These  contractors  by 
maintaining  standards  for  the  various  subdivisions  of  the  work  and  by 
utilizing  the  time-keeping  system,  have  a  check  on  the  time  spent  by  the 
various  workmen  on  any  operation. 

Knowledge  of  a  "  Day's  Work." — In  a  recent  hearing  a  claim  was 
made  by  a  contractor  that  a  bricklayer  laid  1500  brick  before  the  war, 
and  was  laying  500  in  1921.  This  was  answered  very  properly  by  repre- 
sentatives of  the  workmen  that,  without  more  exact  knowledge,  variations 
in  the  kinds  of  walls  make  comparisons  like  this  absurd.  Yet  it  has  been 
the  experience  of  the  author  of  this  report  that  it  is  possible  to  obtain 
data  on  actual  accomplishments  in  all  kinds  of  construction  which  will 
furnish  an  accurate  guide  to  what  a  man  should  accomplish  under  working 
conditions,  with  due  allowance  for  rest  and  delays.  It  is  such  informa- 
tion that  will  eventually  make  it  possible  to  put  building  construction 
on  a  really  manufacturing  basis. 

Studies  of  the  building  trades  were  begun  by  the  late  Frederick  W. 
Taylor  and  by  Sanford  E.  Thompson  in  1894.  Analyses  were  made  of 
the  different  operations  by  determining  the  time  of  the  individual  units, 
such,  for  example,  as  spreading  mortar  for  brick,  laying  one  brick  to  line, 


76  WASTE  IN  INDUSTRY 

stretching  line,  etc.  With  these  as  a  basis,  allowing  a  proper  percentage 
for  rest,  it  was  found  possible  by  combinations  actually  to  determine  a 
fair  day's  work  under  all  variations  of  design  and  types  of  construction. 
Contractors,  however,  have  not  attained  the  point  reached  in  certain 
other  industries  in  establishing  standards  of  production  based  on  thorough 
job  analysis  with  time  study. 

Results  of  Standardization. — In  a  few  cases — few  because  of  lack  of 
proper  facts — incentives  have  been  given  to  the  workmen  to  accom- 
plish more  work  and  to  earn  more  money.  In  one  concern,  through 
the  use  of  such  methods,  combined  with  scheduling  and  planning,  the 
workmen  actually  increased  their  efficiency  during  the  early  years  of  the 
World  War,  when  other  concerns  were  producing  way  below  normal. 
Standards  employed  by  most  contractors  have  been  determined  simply 
by  past  performance  without  accurate  study  of  times,  and  are  of  small 
value.  The  economic  advantages  of  properly  determined  standards 
are  great  and  are  warranted  even  if  for  no  other  purpose  than  to  serve  as 
a  foundation  on  which  employer  and  employee  can  build  up  a  proper 
wage  scale.  A  firm  making  a  specialty  of  tile  setting  in  Cleveland,  as  a 
step  forward  adopted  a  premium  plan  by  which  employers  would  divide 
with  the  employees  the  saving  in  labor  cost  below  the  standard.  There 
has  been  nothing  but  co-operation  in  this  plan  from  the  employees  and 
their  union.  The  Employers'  Association,  however,  objected  and  hin- 
dered the  development  of  the  plan. 

In  this  connection  it  must  be  emphasized  that  standards  of  production 
cannot  be  guessed  at.  With  indisputable  facts  as  a  basis,  workmen, 
whether  union  or  non-union,  are  recognizing  the  value  to  themselves  of 
gaging  pay  by  output.  Unions  in  certain  other  trades,  particularly 
the  needle  trade,  are  definitely  co-operating  along  these  lines.  In 
Montreal,  Canada,  for  example,  very  definite  and  satisfactory 
results  have  been  attained  in  this  way.  These  are  simply  indica- 
tions of  what  the  building  industry,  as  well  as  others,  must  come  to 
recognize. 

Example  of  Organizing  Methods  in  Dwelling  Construction. — An  inter- 
esting example  of  the  practical  use  of  standards  is  afforded  by  a  group  of 
dwelling  houses  built  under  the  direction  of  the  author.  Careful  standards 
were  determined,  based  on  accurate  time  and  job  analysis  on  all  of  the 
applications  of  carpenter  work  for  this  group  of  houses,  of  which  no  two 
were  alike  in.  design.  It  was  found  possible  to  determine  accurately  in 
advance  by  means  of  time  study  data  the  time  it  should  take  a  good  work- 
man, with  proper  allowance  for  rest  and  delays,  to  frame,  erect,  board, 
lay  the  floors,  and  put  on  the  finish.  The  regular  union  rate  was  paid  and 
in  addition  to  this  a  bonus  of  20%  was  paid  for  doing  the  work  in  the  time 
specified.  Later,  on  request  of  certain  exceptional  workers,  the  base  rate 


THE  BUILDING  INDUSTRY  77 

of  these  first  class  men  was  raised,  still  paying  the  20%  bonus  on  the  higher 
rate. 

At  first  the  plan  was  looked  upon  with  suspicion,  the  men  believing 
that  the  work  was  simply  piece  work  under  a  different  name,  and  that  the 
employers  would  use  the  results  to  their  disadvantage.  Gradually, 
however,  this  suspicion  subsided  as  the  men  were  convinced  that  the 
standards  were  not  made  up  from  mere  averages  or  guesses,  but  worked 
up  from  units  so  as  to  cover  all  possible  conditions. 

As  a  result  of  this  work,  unit  costs  were  reduced,  the  earnings  of  excep- 
tional men  increased  40%,  while  average  men  received  20%  in  addition 
to  their  former  pay.  In  handling  this  work  it  was  necessary  to  institute 
a  certain  amount  of  planning  and  scheduling  similar  in  character  to  that 
already  described  for  another  contractor  on  a  preceding  page,  in  order 
to  keep  the  operations  moving  smoothly. 

Methods  of  this  kind  have  proved  themselves  to  be  practicable  on 
the  erection  of  manufacturing  buildings,  on  groups  of  dwelling  houses, 
and  on  various  other  forms  of  construction  work.  One  of  the  principles 
of  the  Associated  General  Contractors  is:  "as  an  incentive  to  greater 
production,  make  provision  for  increasing  compensation  whereby  men  of 
extra  skill  and  knowledge  may  add  to  their  regular  wage." 

Incentive  for  Production  and  Quality  Needed. — But  little  is  accom- 
plished in  this  world  of  ours  without  some  definite  incentive.  This 
incentive  may  be  a  moral  desire  for  accomplishment,  it  may  be  an  aim  for 
advancement-,  or  it  may  be  the  pay  envelope,  which  after  all,  is  the  means 
for  ethical  as  well  as  material  progress.  The  negative  incentive,  the  slave 
driver  method,  reached  its  widest  use  in  construction  operations.  Unfor- 
tunately it  still  exists  in  many  quarters.  "  Damn  you,  get  busy!"  "  Get 
to  hell  out  of  here!"  "  Go  get  your  money!"  are  expressions  we  still  hear. 
But  this  type  of  management  is  passing.  It  must  not  be  replaced  by  a 
"  go-easy  "  policy  which  takes  all  the  stamina  and  character  and  individu- 
ality out  of  a  man,  but  by  well-defined  methods,  such  as  definite  records 
of  accomplishment,  scales  of  wages  based  upon  quality  and  quantity  of 
work  done,  or  bonuses  for  coming  within  the  required  standards  of  quality 
and  production.  All  of  these  devices,  however,  are  worthless  without 
determination  of  standards,  knowledge  of  a  proper  day's  work,  and  control 
of  the  work  and  materials  as  above  described. 

Inadequate  Employment  Management. — As  already  noted,  scarcely 
a  building  concern,  even  the  largest,  employs  a  man  whose  distinct  duty 
it  is  to  engage  workmen,  take  an  interest  in  their  welfare,  and  advise  with 
reference  to  discharges  and  other  personnel  features.  A  few  who  are 
making  attempts  along  these  lines  find  themselves  well  repaid.  In  most 
building  construction  the  superintendent  and  various  foremen  have  the 
entire  responsibility  for  "  hiring  and  firing  "  the  men  directly  under  them. 


78  WASTE  IN  INDUSTRY 

As  shown  by  the  diagrams  in  Figure  12,  the  high  percentage  of  quits  could 
be  appreciably  reduced  by  better  employment  methods.  In  the  building 
industry  references  or  evidences  of  a  workman's  ability  are  rarely 
demanded.  As  a  result  men  are  employed  and  after  a  period  of  ineffici- 
ency, in  many  cases  resulting  in  considerable  loss  by  spoiling  materials, 
they  are  discharged,  only  to  repeat  the  performance  elsewhere,  frequently 
on  another  job  for  the  same  contractor.  In  one  case  a  man  who  claimed 
to  be  a  plasterer,  bricklayer,  and  a  finisher  was  tried  at  each  of  these  jobs 
without  properly  qualifying  and  at  the  expense  of  the  contractor.  The 
contractor  excused  himself  on  the  grounds  that  men  were  urgently  needed, 
and  that  everyone  must  be  given  a  trial. 

Preference  List. — One  contractor  places  men  of  proved  ability  on  a 
preference  list  to  which  additional  names  are  added  from  time  to  time. 
These  men  are  kept  in  practically  constant  employment,  even  if  it  is 
necessary  to  lay  off  a  man  not  on  this  list.  This  results  in  attracting  men 
of  proved  ability  and  also  forms  a  well-defined  incentive  to  other  men  to 
prove  their  ability  so  as  to  get  on  the  list.  Turnover  expenses  are  reduced 
and  the  quality  of  work  advanced.  This  concern  keeps  close  record 
of  all  men  employed,  with  their  rating,  so  that  in  time  of  increased  business 
these  men  may  be  drawn  upon,  thus  cutting  down  the  process  of  "  hiring 
and  firing." 

Lack  of  Proper  Equipment. — Contractors,  by  failure  to  make  thorough 
studies  to  determine  the  amount,  type,  and  best  location  of  plant  and 
equipment,  add  another  contribution  to  waste. 

A  large  percentage  of  the  contractors  hold  that  they  do  make  studies  of 
plant  requirements,  and  then  perfect  their  layouts  after  the  job  is  in  opera- 
tion if  they  are  found  uneconomical.  A  contractor  operating  in  a  New 
England  city  found  on  a  visit  to  a  job,  supposed  to  have  been  carefully 
laid  out,  that  the  concrete  mixer  in  operation  was  not  the  proper  type. 
Not  having  one  in  stock  he  wired  New  York  and  had  one  sent  by  truck 
to  prevent  delay  to  the  job.  This  proved  to  be  worth  the  expense.  The 
plant  on  this  job  evidently  was  not  thoroughly  studied.  In  the  majority 
of  cases  like  this  the  plant  is  not  changed  but  continues  to  operate  ineffici- 
ently. It  is  becoming  more  and  more  common  on  large  jobs  to  prepare 
drawings  of  the  design  of  the  plant.  Unless  the  engineers,  in  making 
such  designs,  however,  collaborate  with  the  practical  superintendent, 
details  are  apt  to  be  poor.  For  example,  on  one  job  to  which  the  atten- 
tion of  the  author  was  directed,  a  concrete  plant  satisfactory  in  general 
pan  was  designed  by  engineers,  but  in  operation  it  was  found  that  the 
shape  of  the  sand  bins  necessitated  frequent  leveling  of  the  piles.  The 
outlet  gates  also  were  so  designed  and  placed  that  three  men  instead  of 
one  were  required  to  fill  the  material  cars  with  sand  and  gravel.  The 
detail  of  the  design  of  the  cement  shed  was  such  as  to  require  three  times 


THE  BUILDING  INDUSTRY  79 

as  many  men  as  should  have  been  needed  to  handle  and  empty  the 
cement. 

Concrete  equipment,  even  when  properly  built,  is  frequently  installed 
with  bad  judgment  and  without  definite  planning,  so  as  to  increase  greatly 
the  number  of  workmen  required.  The  slope  of  the  chutes  is  frequently 
so  flat  as  to  require  sloppy  concrete  of  unsatisfactory  quality.  Hoppers 
are  arranged  without  regard  for  convenient  access  of  barrows.  Tools  and 
small  equipment  are  neglected. 

It  is  not  hard  to  find  large  operations  where  reinforcing  steel  is  cut  by 
hand  instead  of  with  power  shears.  Again,  the  lack  of  foresight  of  con- 
tractors in  not  properly  planning  the  storage  of  material  is  evident. 

The  possibilities  of  savings  by  the  application  of  more  plant  engineering 
are  enormous,  since  the  cost  of  all  operations  is  affected  by  the  equip- 
ment used  in  handling  materials,  the  location  of  this  equipment,  and  the 
efficiency  with  which  it  is  utilized.  General  failure  of  the  industry  as  a 
whole  to  develop  and  use  a  greater  amount  of  mechanical  equipment  is 
an  established  fact.  Greater  strides  have  been  made  in  almost  every 
other  industry  in  the  application  of  mechanical  means  as  labor-saving 
devices  and  production  stimulants.  Contractors  would  do  well  to  realize 
this  and  by  direct  interest  develop  this  side  of  the  industry. 

Employers  will  do  well  to  recognize  the  possibilities  of  assistance  from 
the  workmen  in  the  development  of  labor-saving  equipment  and  methods. 
Although  in  certain  cases  unions  have  objected  to  labor-saving  devices, 
this  is  a  wrong  principle. 

With  the  larger  education  now  taking  place,  it  will  be  relegated  to  the 
past  like  restriction  of  output.  The  workmen  have  an  opportunity  to 
co-operate  in  the  development  of  equipment  and  methods  which  will 
lighten  the  work,  improve  quality  and  make  for  production. 

III.  WASTEFUL  LABOR  REGULATIONS 

Waste  attributable  to  labor  in  the  building  industry  arises  from  many 
sources  and  the  amount  of  waste  fluctuates  with  the  demand  for  labor. 
Interesting  evidence  of  this  fluctuation  is  contained  in  Figure  14,  which 
compares  the  cost  of  labor  on  seven  different  jobs  by  one  contractor. 
The  basis  of  each  group,  or  the  100%  line,  is  the  estimate  of  cost.  All 
the  buildings  were  constructed  in  the  same  year,  during  the  war,  and  were 
similar  in  general  type.  The  difference  in  cost,  therefore,  may  be  laid 
directly  to  labor  conditions.  The  heavy  black  lines  represent  union 
trades  employed  on  the  operations  indicated,  while  the  cross  hatch  lines 
represent  non-union  trades  employed.  In  these  cases  it  is  evident  that 
the  union  labor  was  much  less  efficient  than  the  non-union  labor.  The 
object  of  the  chart,  however,  is  to  show  the  possibilities  in  eliminating 


so 


WASTE  IN  INDUSTRY 


waste  of  labor  and  increasing  production.  With  thorough  co-operation 
of  unions  with  employers  and  the  development  of  the  old  guild  spirit, 
which  tends  to  give  a  man  pride  in  the  quantity  and  quality  of  his  work, 
there  is  the  possibility  of  increasing  production  and  by  these  means  of 
maintaining  high  wages,  yet  with  a  resultant  lowering  of  costs.  Lower 
labor  costs,  as  we  have  emphasized,  mean  more  building  and  more  con- 
tinuous employment  for  the  worker. 

Hours  of  Labor  and  Wages. — For  mechanics  or  skilled  labor,  the 
8-hour  day  is  almost  universal,  while  laborers  work  9  hours.  In  certain 
localities  and  in  certain  trades,  instead  of  a  half-holiday  Saturday  the 
men  require  a  whole  day,  and  thus  put  in  only  40  hours  per  week  on  jobs. 


1 

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FIG.  14. — Labor  Costs  of  Seven  Similar  Concrete  Buildings,  in  Per  Cent  of  Estimated 
Labor  for  Trades  as  Indicated. 

Where  time  is  an  object,  it  is  necessary  to  pay  time  and  a  half  for  a  half- 
day  Saturday. 

The  increase  in  wages  in  different  trades  during  the  past  eight  years 
in  comparison  with  the  cost  of  living  is  shown  in  Figure  15. 

Labor  Organization. — The  building  trades,  because  of  the  scattered 
nature  of  their  work  and  its  miscellaneous  and  seasonal  character,  particu- 
larly need  organizations  that  will  assist  them  in  maintaining  their  rights  and 
obtaining  a  square  deal.  The  trade  unions  tend  to  relieve  the  contractors 
of  their  responsibility,  as  they  act  in  a  measure  as  employment  agencies. 
They  are  also  supposed  to  vouch  for  the  ability  of  their  men,  but,  unfortu- 
nately, the  ability  of  union  men  is  as  little  known  as  that  of  non-union 
men,  and  does  not  obviate  the  need  of  complete  employment  records. 


THE  BUILDING  INDUSTRY 


81 


Particularly  during  the  demand  for  men  in  the  past  few  years,  unions  have 
necessarily  taken  in  those  having  little  skill  or  ability,  and  these  still 
retain  their  union  cards. 

Union  Rules.— Some  of  the  union  rules  affecting  work  are  justified 
in  furthering  quality  and  workmanship.     Many  are  absolutely  wrong 
ZZO 


210 


200 


110 


100 


Year 
FIG.  15.  —  Per  Cent  Increase  in  Cost  of  Living  and  Wage  Scales,  Paid  in  Various  Trades 

in  Building  Work. 

Figures  from  U.  S.  Bureau  of  Labor  Statistics  which  cover  thirty-two  cities  in  the  entire  country. 
The  figures  plotted  being  an  average  of  all  cities. 

and  uneconomical  and  show  the  lack  of  recognition  of  the  fundamental 
principles  of  economics,  which  require  that  a  man  give  his  best  in  order  to 
receive  fair  returns.  Many  unions  have  exceeded  the  limits  of  fairness, 
and  partly  because  of  the  leaders'  lack  of  appreciation  of  the  fundamental 
need  for  high  production,  have  formulated  by-laws,  and,  in  individual 
cases,  have  formulated  demands  that  have  been  a  tremendous  factor, 


82  WASTE  IN  INDUSTRY 

directly  or  indirectly,  in  the  restriction  of  output.  This  has  resulted  in 
increase  in  cost  and  reduction  in  the  demand  for  building.  It  represents, 
in  fact,  one  of  the  great  sources  of  waste  in  the  building  industry.  This 
policy  has  reacted,  resulting  in  widespread  opposition  to  unions.  In 
fact,  some  of  the  most  successful  building  contractors  employ  non-union 
labor  because  of  their  opposition  to  unjust  union  rules  and  requirements. 

In  considering  this  question  it  must  be  recognized  that  the  unions  are 
by  no  means  alone  in  their  restriction  of  output.  The  contractors  and 
builders  and  supply  dealers  affect  the  situation  to  as  great  a  degree 
indirectly  by  maintenance  of  high  prices,  collusion  in  bidding,  and  unfair 
practices.  Collusion  between  unions  and  employers  also  has  sometimes 
raised  prices  unduly. 

Examples  follow  showing  simply  what  must  be  guarded  against  and 
eliminated  from  the  rules  and  by-laws  of  certain  local  unions  if  the  work- 
men are  to  make  progress  and  share  in  the  general  development  which  is 
taking  place. 

Requiring  Skilled  Men  to  do  Unskilled  Work. — Below  are  given  some 
examples  of  union  regulations  which  have  required  skilled  men  to  do 
unskilled  work: 

1.  Carpenters'  helpers  are  prohibited  from  using  carpenter  tools,  requiring  car- 
penters to  do  such  work  as  stripping  forms  from  concrete.     Experience  shows 
that  helpers  can  do  this  more  economically  and  as  well. 

2.  Brick  masons  insist  on  washing  down  and  pointing  brick  work  when  laborers 
could  do  it  more  economically. 

3.  Structural  steel  workers  under  certain  rules  must  bring  the  steel  from  the 
unloading  point  to  the  building  site,  thus  doing  laborers'  work  at  high  cost. 

4.  Structural  steel  men  place  reinforcing  steel  for  concrete,  whereas  experience 
has  proved  conclusively  that  properly  trained  laborers  can  do  it  to  as  good 
advantage,  and  at  greatly  lowered  cost. 

5.  Structural  steel  men  claim  the  rigging  on  a  job.     For  a  small  derrick  used  in 
footing  excavation,  the  bucket  cable  had  to  be  guided  by  hand  and  the  hoisting 
engineer  signalled  by  a  skilled  iron  worker. 

6.  Hoisting  engineers  claim  the  right  to  run  all  types  of  engines,  including  small 
gas-driven  pumps  which  require  no  skill.    On  one  job  a  contractor  had  to  hire 
a  union  engineer  at  $8.00  per  day  simply  to  start  a  pump  in  the  morning,  oil  it 
occasionally,  and  stop  it  at  night. 

7.  Union  rules  in  general  require  distribution  of  plumbing  materials  above  the 
first  floor  by  union  plumbers. 

Uniform  Wage. — One  of  the  greatest  fundamental  causes  for  low 
output  is  the  fact  that  all  members  of  unions  in  the  same  trade  are  paid 
the  same  minimum  wage.  Occasionally  as  the  demand  exceeds  the  sup- 
ply certain  individuals  are  paid  in  excess  of  this,  but  it  is  exceptional. 
There  is  no  incentive.  As  a  result  of  records  made  by  the  author  on 
actual  construction  work,  it  was  found  that  in  the  building  trades  on 
every  job  there  are  usually  a  few  men  who  do  one-third  more  work  than 


THE  BUILDING  INDUSTRY  83 

the  average  man  on  this  same  job.  These  men  also  do  better  work.  Is 
it  fair  to  these  good  men  for  them  to  receive  the  same  wage  as  the 
others? 

Limiting  Apprentices. — Restriction  of  apprentices  in  many  cases 
is  extreme  and  unfair.  Overtime  and  travel  rules  also  tend  to  increase 
building  costs  unduly. 

Restricting  Output. — Many  unions  at  the  present  time  have  in  their 
by-laws  no  requirements  for  restricting  output,  and,  as  has  been  stated, 
appreciate  the  fact  that  this  is  contrary  to  good  principles. 

The  following  notes,  however,  illustrate  what  are  included  in  certain 
local  rules : 

1.  Lathers  propose  that  12  bundles  of  laths  shall  constitute  an  8-hour  day's  work. 
Formerly  the  output  was  restricted  to  16  bundles. 

2.  Certain  painters'  unions  do  not  permit  their  men  to  use  a  brush  wider  than 
4|"  for  oil  paint,  although  for  certain  classes  of  work  a  wider  brush  is  more 
economical. 

3.  Painters'  unions  refuse  to  allow  their  men  to  work  on  a  job  where  a  spraying 
machine  is  being  used.     The  claim  is  made,  with  little  foundation,  that  this 
is  unhealthful. 

4.  Plumbers'  and  steamfitters'  unions  prohibit  the  use  of  bicycles  and  vehicles 
of  all  sorts  during  working  hours. 

5.  Members  of  plumbers'  and  steamfitters'  unions  in  some  sections  demand  that 
all  pipe  up  to  2"  shall  be  cut  and  threaded  on  job. 

Jurisdictional  Regulations. — A  potent  source  of  labor  waste  is  the 
jurisdictional  practice  which  distributes  certain  types  of  work  to  different 
trades,  frequently  without  regard  to  expense.  In  one  case,  in  order  to 
move  a  pump  and  set  it  up  in  a  different  location  in  a  foundation  hole, 
it  was  necessary  to  get  a  pair  of  steamfitters  to  disconnect  the  steam 
pipe,  a  pair  of  plumbers  to  remove  the  suction  apparatus  and  replace  it, 
a  structural  iron  man  to  erect  the  rig  to  lift  the  pump,  and  an  engineer 
to  operate  the  valves  on  the  pump.  This  took  eight  men  for  the  opera- 
tion, who  had  to  be  taken  from  other  work,  when  one  man,  assisted  by  a 
laborer,  could  have  accomplished  the  entire  job. 

Jurisdictional  strikes  which  probably  represent  one-quarter  of  the  total 
number  are  mainly  quarrels  between  unions.  Some  headway  has  been 
made  by  the  unions  in  the  settlement  of  points  which  cause  these  juris- 
dictional disputes  through  the  agency  of  the  National  Board  of  Jurisdic- 
tional Awards.  This  board  has  done  valuable  work,  but  in  settling  dis- 
putes doors  are  left  open  for  future  argument  since  the  decisions  are  not 
founded  on  a  sound  economic  basis.  From  the  standpoint  of  economy  and 
ultimate  benefit  to  the  workmen,  as  well  as  to  the  builder,  it  is  important 
to  decide  which  type  of  mechanic  can  handle  a  given  operation  to  the  best 
advantage  rather  than  which  of  two  trades  shall  do  the  work. 


84  WASTE  IN  INDUSTRY 

Suggestions  from  Unions. — Despite  the  restrictive  action  of  many  of 
the  union  regulations,  there  is  growing  evidence  of  willingness  to  co-op- 
erate. As  an  example  of  this  are  the  following  suggestions  for  the  elim- 
ination of  waste  given  to  the  author  by  members  of  the  Building  Trades 
Council  which  comprises  twenty-six  building  unions  in  Philadelphia  and 
is  also  affiliated  with  non-union  workmen. 

The  waste  in  the  sheet  metal  trade  comes  under  the  following  heads: 

1.  Mistakes  in  estimating  cause  mechanics  to  be  accused  of  loafing,  and  such 
unjust  accusations  injure  the  efficiency  of  the  men. 

2.  Woodwork  out  of  measurement  causes  the  erecting  mechanic  to  alter  work 
which  has  been  made  up  in  the  shop  from  plans. 

3.  Scarcity  of  scaffolding  causes  inefficiency  because  men  cannot  work  to  advan- 
tage without  ample  working  space. 

4.  Lost  time  of  excellent  erecting  mechanics  because  they  are  not  given  oppor- 
tunity to  work  in  shop  in  bad  weather. 

5.  Lack  of  materials  on  hand  when  men  arrive  on  job  from  shop. 

6.  Time  lost  due  to  wage  disputes. 

7.  Inferior  materials  used  cause  replacements  of  tin  roofs  in  from  six  to  eight  years, 
while  if  good  tin  were  used  it  wrould  last  20  years. 

8.  Apprentices  not  properly  trained. 

The  Cement  Finishers'  Union  suggested  that  considerable  waste  in 
reinforced  concrete  construction  is  due  to  unintelligent  men  supervising  it. 
Frequently  rough  slabs  are  put  in  by  unintelligent  or  incompetent  foremen, 
requiring,  because  of  poor  levels,  from  1|  to  2|"  of  finishing  material  in 
place  of  1"  as  specified. 

The  Steamfitters'  Union  referred  to  waste  from  inexperienced  help, 
and  from  failure  of  employers  to  furnish  men  with  up-to-date  tools,  lack 
of  co-operation  between  employees  and  employers,  and  failure  to  deliver 
materials,  causing  delays  not  only  to  the  steamfitters  but  to  all  those  whose 
work  follows.  The  installation  of  inferior  heating  plants  tended  toward 
consumption  of  an  excessive  amount  of  fuel. 

Waste  in  slate  and  tile  roofing  results  from: 

1.  Lack  of  trained  apprentices  because  new  helpers  are  employed  for  each  job; 

2.  Handling  broken  material  caused  by  punching  at  quarries; 

3.  Punching  now  done  at  quarry  should  be  reserved  to  be  done  in  the  shop  on 
rainy  days,  thus  eliminating  lost  time; 

4.  Lost  time  waiting  for  materials ; 

5.  Tons  of  discarded  materials  at  quarries  could  be  worked  up  for  diamond 
single-lap  slate,  which  would  be  available  to  the  public  at  cheaper  rates; 

6.  Waste  due  to  using  ordinary  nails,  which  rust  out  in  a  few  years,  instead  of 
galvanized  or  copper  nails. 

The  Carpenters'  Union  referred  to  the  time  that  can  be  saved  if 
contractors  use  bolts  instead  of  nails  in  the  erection  of  scaffolding,  also 
resulting  in  a  great  material  saving. 


THE  BUILDING  INDUSTRY  85 

Typical  waste  in  painting  includes: 

1.  Insufficient  scaffolding,  causing  waste  of  time  of  painters  in  repairs  on  jobs. 

2.  Incompletion  of  rooms — moldings  for  example  left  incomplete,  causing  painter 
to  take  the  time  to  return  to  the  job  later; 

3.  Changes  made  after  work  is  completed; 

4.  Delay  occasioned  by  waiting  for  the  selection  of  colors  by  the  owner; 

5.  Poor  materials  and  insufficient  tools  and  materials,  causing  the  painter  to 
waste  time. 

The  Bricklayers'  Union  reports  the  following: 

1.  Use  of  cement  mortar  of  1  :  3  mix,  instead  of  lime  mortar,  reduces  the  produc- 
tivity of  masons  materially. 

2.  Mortar  improperly  mixed  by  untrained  men  and  the  quick  setting  features  of 
the  1  :  3  mix  keep  a  man  continually  tempering  it. 

3.  Dumping  of  common  brick  is  wasteful  because  of  high  breakage  and  extra  cost 
of  laying  the  broken  brick. 

4.  The  bricklayer  may  be  likened  to  a  machine.    When  not  in  use  it  will  rust. 
A  mason  becomes  soft  and  muscle-bound  when  unemployed,  which  tends  to 
slow  him  up  when  again  employed. 

Opportunity  of  the  Unions. — One  of  the  principal  aims  of  the  trade 
unions  should  be  to  make  their  services  valuable  to  the  employer  by 
developing  and  training  the  men  in  their  organization  and  establishing 
a  high  standard,  by  assisting  in  the  development  of  standardization  of 
time,  method  and  material.  Some  unions  are  taking  the  initiative  in 
these  matters,  opposing  restriction  of  output,  and  training  and  educating 
their  members,  thus  producing  good  mechanics  and  furthering  the  elimina- 
tion of  waste. 

Attention  has  already  been  called  to  the  "  Philadelphia  Plan,"  worked 
out  by  the  Building  Trades  Council  of  trade  unions  in  co-operation  with 
open  shop  workmen.  In  San  Francisco  there  has  been  established  a 
permanent  Board  of  Arbitration  consisting  of  three  members,  empowered 
both  by  the  Builders'  Exchange  and  by  the  Building  Trades  Council  to 
go  into  all  matters  that  affect  wages,  working  conditions  and  costs,  as  well 
as  to  set  wage  scales  in  those  trades  in  which  there  is  a  controversy  at 
present. 

IV.  MISCELLANEOUS  SOURCES  OF  WASTE 

Accidents. — Approximately  $30,000,000  every  year  represents  the 
actual  money  paid  to  insurance  companies  for  compensation  and  liability 
insurance.  Even  this  enormous  figure  by  no  means  represents  the  total 
loss.  While  state  laws  vary,  in  general  an  injured  workman  must  be 
disabled  some  7  days  to  two  weeks  before  receiving  an  award,  and  then 
receives  as  compensation  only  about  one-half  his  average  daily  earnings. 
The  loss  to  the  contractor  is  less  tangible,  but  where  a  man  is  out  a  new 
one  must  be  broken  into  a  job  with  loss  of  time  and  frequently  loss  of 


86  WASTE  IN  INDUSTRY 

material.  In  case  of  serious  accident,  also,  there  is  stoppage  of  work  and 
extended  loss  of  time  of  the  entire  gang.  In  the  opinion  of  one  of  the 
best  authorities  in  the  country  the  actual  cost  of  insurance  represents 
not  more  than  25%  of  the  total  economic  loss,  which  brings  the  total 
cost  due  to  accidents  in  the  vicinity  of  $120,000,000  per  year — a  stagger- 
ing total.  As  shown  in  paragraphs  which  follow,  an  appreciable  propor- 
tion of  this  can  be  eliminated  by  proper  care. 

In  the  State  of  Massachusetts,  where  about  150,000  mechanics  were 
employed  in  the  building  trades  for  the  year  July  1,  1919  to  July  1,  1920, 
there  were  5,032  tabulated  accidents,  representing  a  loss  of  time  of 
485,486  days. 

In  New  York  State  about  four  times  as  many  people  are  employed 
in  the  factories  as  are  employed  in  building  and  construction  work,  yet 
during  the  four  years  1910  to  1914  more  fatalities  due  to  accidents  occurred 
in  building  and  construction  work  than  in  factories: 

Accidents  in  building  and  construction  work 1641 

Accidents  in  factories 1285 

Falls  caused  more  fatalities  than  any  other  single  cause,  as  shown  in 
table  below: 

Fall  of  persons 545 

Mechanical  power 518 

Weights  and  falling  objects . 246 

Heat  and  electricity 239 

Miscellaneous 93 

1641 

Causes  of  Accidents. — Accidents  are  largely  caused  by  carelessness 
of  the  workmen,  or  lack  of  ordinary  safeguards.  Staging  is  carelessly 
built  and  inadequately  inspected;  runs  above  ground  are  laid  only  one 
plank  wide;  roughly  built  ladders  composed  of  narrow  cleats  nailed  to 
vertical  uprights  are  used  even  on  lengthy  jobs  in  place  of  stairs,  which 
the  best  contractors  find  most  economical  as  well  as  safer;  runs  and 
passageways  in  constant  use  in  high  buildings  are  built  without  rails  and 
obstructed  with  steel  or  lumber;  overhead  traveling  cables  are  unpro- 
tected. Small  attention  is  paid  to  the  details  of  construction  in  these 
matters.  Conditions  which  would  not  be  tolerated  in  a  factory  for  twenty- 
four  hours  are  found  on  every  job.  The  amount  of  actual  saving  that  can 
be  made  on  a  large  construction  job  by  providing  proper  roadways 
and  runs  and  inclines  are  but  little  realized  by  the  average  contractor. 

Preventable  Waste. — An  official  of  a  large  insurance  company  believes 
that  by  proper  safety  measures  the  waste  due  to  accidents  can  be  reduced 


THE  BUILDING  INDUSTRY 


87 


75%  to  80%  in  from  two  to  five  years  of  honest  effort,  and  that  construc- 
tion labor  cost  can  be  cut  3%  by  these  measures.  Another  official 
estimates,  from  actual  accomplishment  in  safety  measures,  that  a  total  of 
more  than  12,000,000  days  a  year  could  be  saved  the  industry  by  the 
application  of  safety  methods. 

Insurance  rates  in  building  construction  are  higher  than  in  any  other 
industry.  Rates  are  dependent  on  the  cost  of  the  accidents  which  actually 
occur.  Therefore,  any  reduction  in  accidents  reduces  the  insurance  paid. 
The  morale  of  the  workman  is  also  improved  if  he  knows  that  his  employer 
is  looking  after  his  welfare  and  health 

Examples  of  Accident  Elimination. — As  illustrations  of  what  can  be 
accomplished  in  reducing  accidents,  the  experience  of  several  companies 
that  have  taken  up  this  matter  in  earnest  is  of  interest : 

1.  One  contractor  who  employs  an  average  working  force  of  3,000  full-time 
workers,  by  the  application  of  safety  methods,  by  combating  carelessness 
and  lack  of  foresight,  by  safety  bulletins,  and  by  personal  instruction  cut  his 
accident  rate  50%  in  three  months.     Maintaining  this  reduction  for  the 
entire  year  will  effect  a  saving  of  4,950  working  day's  representing  in  wages 
saved,  more  than  $27,000,  without  taking  into  account  saving  through  the 
elimination  of  fatal  accidents. 

2.  A  large  New  England  contractor  whose  safety  precautions  have  long  been  a 
part  of  the  general  policy,  has  constantly  increased  his  discount  earned  in 
liability  and  compensation  insurance,  until  at  the  present  time  his  rates  in 
some  cases  have  been  reduced  to  about  $4.80  against  the  usual  $10.00  per 
$100  of  payroll. 

3.  One  large  general  contractor  whose  loss  due  to   accidents  equalled  2J%  of 
total  days  worked,  upon  installation  of  safety  methodsr  educed  this  to  TO  of 
1%.     The  table  below  shows  that  for  the  two  periods  covered  the  severity 
rate  decreased  75%  and  the  frequency  rate  more  than  one-third. 


Period 
July  1,  1919  to 
July  1,  1920 

Period 
July  1,  1920  to 
Oct.  1,  1920 

(1)  Average  number  of  employees  
(2),  Total  number  of  hours  actually  worked  by  all 
employees  per  month  
(3)  Number  of  accidents  per  month  causing  lost  time 
longer  than  the  day  or  shift  on  which  injury 
was  received 

3,341 

835,600 

44 

3,055 

764,800 

27 

(4)  Number  of  days  per  month  lost  because  of  ac- 
cidents   
(5)  Frequency  rate.     Number  of  accidents  per  mil- 
lion hours  worked  
(6)  Severity  rate  (number  of  days  lost  per  thou- 
sand hours  worked) 

2,770 
51.8 
3.29 

640 
35.8 
84 

88 


.     WASTE  IN  INDUSTRY 


This  gradual  reduction  in  accidents  per  one  hundred  employees  is 
shown  in  Figure  16. 

Delays  from  Lack  of  Plans  and  Details. — The  employers  and  workmen 
are  not  the  only  offenders  in  delaying  operations.  Architects  frequently 
cause  expensive  delays  and  occasionally  complete  shutdowns  by  failure 
to  deliver  detail  plans  at  the  proper  time.  Some  architects  leave  the 
matter  of  securing  details  to  the  builder,  as  they  feel  the  builder  knows 
when  these  details  are  required.  Then  the  builder  may  fail  to  call  for 
them  until  it  is  too  late  for  the  architect  to  produce  them  on  time,  resulting 
in  a  delay.  The  value  of  a  set  schedule  of  operations  placed  in  the  hands 


90 
80 

10 
</> 

|  GO 
'3 

$50 
o 
"c  40 

I   30 
£0 
10 
0 

First 

iod        2nd.            3rd.            4th. 

FIG.  16. — Reduction  in  Accidents  Per  100  Employees  Accomplished  by  One  Contractor 
by  Applying  Safety  Methods. 

of  the  architect  at  the  start  of  an  operation  forewarns  the  architect  of 
the  builder's  need. 

Design  Duplication. — The  waste  of  time  and  energy  and  money 
through  duplication  of  estimates  and  of  designs  runs  into  the  millions 
every  year.  Frequently  the  architect  makes  general  designs  and  because 
of  lack  of  knowledge  or  to  keep  the  apparent  cost  of  design  low,  asks  all 
the  bidders  to  design  the  structural  details  in  order  to  get  their  quantities. 
Not  only  must  the  bidder  include  the  cost  of  this  design  in  his  proposal, 
but  he  must  allow  in  addition  an  overhead  to  cover  the  cost  of  various 
similar  designs  he  made  without  getting  the  contract.  This  duplication 
of  design  is  an  absolute  waste  of  money,  and  the  owner  pays  the  bills.  It 
is  apt  also  to  result  in  designs  weak  at  certain  critical  points  and  more 
expensive  as  a  whole  than  those  attained  with  thorough  engineering  study. 


THE  BUILDING  INDUSTRY  89 

Quantity  Surveys. — An  equal,  if  not  greater,  source  of  waste  is  the 
duplication  in  figuring  quantity  by  all  bidders.  Frequently  on  a  com- 
paratively small  job  there  may  be  a  dozen  bidders.  Each  one  takes 
the  architect's  or  engineer's  plans,  figures  the  quantity  of  steel,  the  lum- 
ber, the  brick,  plaster,  and  so  on.  Not  only  is  there  opportunity  for  error, 
but  the  work  of  each  is  a  duplication  of  the  others. 

The  owner  pays  the  bills  in  all  these  cases. 

A  joint  committee  of  representatives  of  the  American  Institute  of 
Architects,  American  Engineering  Council,  and  the  Associated  General 
Contractors  of  America,  has  been  studying  the  subject  of  quantity  survey 
and  payment  for  estimating. 

The  report  of  the  Committee  is  tentative  and  only  issued  in  view  of 
the  great  interest  in  the  subject.  The  following  is  an  excerpt  from  this 
report : 

"  When  I  ask  fifteen  men  to  submit  bids  for  performing  prospective 
construction,  do  I  pay  the  successful  bidder  only,  or  do  I  pay  for  the  prepara- 
tion of  all  the  bids?" 

The  committee  has  decided  that  the  owner  pays  for  all  bids,  as  the 
contractor's  "  overhead  "  is  greater  because  it  must  include  the  cost  of 
estimates  made  on  unsuccessful  bids.  In  the  end  it  is  far  cheaper  for  the 
owner  to  pay  for  a  quantity  survey  whether  he  proceeds  with  the  building 
or  not,  and  it  recommends: 

"  1st.  Architects,  Engineers,  and  Contractors  should  jointly  use  their  efforts 
to  have  established  facilities  for  making  quantity  surveys  in  their  communi- 
ties," .  .  . 

The  advantages  are  lower  cost,  since  the  owner  pays  for  only  one 
quantity  survey,  and  uniformity  of  bids,  the  contractor  figuring  on 
known  quantities.  It  changes  speculation  to  competition  and  the  unit 
prices  in  the  successful  bid  form  the  basis  for  additions  or  deductions  in 
quantities. 

Standardization  by  the  Associated  General  Contractors. — The  Asso- 
ciated General  Contractors  of  America,  organized  in  1918,  and  with  a 
membership  of  750,  representing  37  states,  is  doing  excellent  work  through 
its  active  committees  on  contracts,  etliics,  labor  and  methods.  The 
Committee  on  Contracts  is  working  up  standard  forms  of  contracts  for 
use  by  all  contractors.  The  Committee  on  Ethics  is  developing  and  has 
submitted  a  proposed  code  of  ethics  which  will  do  much  to  raise  the 
professional  standard  of  all  contractors;  the  Committee  on  Methods  is 
endeavoring  to  standardize  forms  of  contractors'  equipment  leases, 
quantity  surveys,  etc.;  the  Committee  on  Labor  has  developed  a  con- 


90  WASTE  IN  INDUSTRY 

stitution  and  status  of  industrial  relations,  in  which  are  considered  the 
rights  of  the  employee,  employer  and  public.  In  the  preamble  of  the 
"  Fundamental  Principles  of  Industrial  Employment  Relations  "  is  the 
following:  "Justice  to  all  interests,  Co-operation  between  employer  and 
employee,  produces  Service  to  the  public." 

Standardization  of  Design  and  of  Details. — While  the  standardization 
of  dwellings  or  other  types  of  buildings  is  not  generally  practicable,  certain 
details  are  capable  of  standardization,  and  should  be  introduced  and  made 
uniform  in  building  codes.  Take  the  thickness  of  walls,  for  example.  In 
a  recent  survey  made  by  D.  Knickerbacker  Boyd  of  some  ninety  cities, 
thirty  of  them  required  a  13"  wall  for  the  first  story  and  9"  wall  for  the 
second,  while  the  remaining  thirty  required  a  9"  wall  above  the  basement. 
Adoption  of  the  last  requirement  means  a  saving  of  some  $600.00  in  the 
cost  of  an  average  house. 

Even  the  size  of  the  brick  is  not  standardized.  In  some  localities 
the  size  of  brick  requires  for  2-brick  width  an  8"  wall,  whereas  in  others 
it  requires  a  9"  wall  for  the  same  type  of  work. 

Standardizing  mill  work,  such  as  windows,  doors,  and  other  similar 
items  entering  into  the  average  building,  would  reduce  the  waste  inherent 
in  the  "  made  to  order  "  policy. 

Waste  of  Material. — It  is  outside  the  province  of  this  assay  to  consider 
at  length  the  waste  in  building  due  to  lack  of  economy  in  design.  In 
construction,  however,  a  great  deal  of  waste  occurs  in  cutting  lumber, 
breakage  of  brick,  loss  of  mortar,  and  damages  to  materials.  In  scaf- 
folding the  waste  of  lumber  is  appalling.  New  lumber  and  thin  boards 
are  used  until  one-half  of  this  is  ruined  before  the  finish  of  the  job.  In 
Europe  a  good  builder  owns  thick  planks  and  sturdy  poles  which  he 
takes  with  him  from  job  to  job,  and  erects  the  scaffolding  largely  without 
nails.  Half-hearted  architects,  builders,  and  members  of  the  building 
trades  can  be  singled  out  by  the  lack  of  care  with  which  they  conduct 
their  business  operations.  Successful  architects,  builders,  and  workmen 
are  those  who  eliminate  the  unnecessary  elements  of  waste. 

Encouraging  Signs. — The  most  encouraging  feature  in  the  building 
industry  today  is  the  action  of  a  few  of  the  builders  and  a  few  groups  of 
building  trade  workmen  in  making  intensive  studies  of  the  causes  and 
remedies  for  irregular  employment  and  haphazard  conditions  of  work. 
Along  with  this  is  the  growing  appreciation  on  the  part  of  both  labor  and 
management  that  to  build  more  buildings  and  maintain  high  wages  it  is 
necessary  to  attain  greater  and  greater  productive  capacity  per  man. 
They  see  as  proof  of  these  facts  that  the  1921  depression  was  caused  and 
extended  by  too  high  costs  of  all  products,  and  that  business,  either  in 
manufacturing  or  in  building  industries,  is  improving  only  as  the  costs  of 
and  the  materialcost  of  labor  are  reducing.  All  are  recognizing,  in  fact, 


THE  BUILDING  INDUSTRY 


91 


FIELD     REPORT  EVALUATION 

COMMITTEE   ON    ELIMINATION   OF  WASTE     N    INDUSTRY 
AMERICAN    ENGINEERING    COUNC  L 
OF 

INDUSTRY  Building               PLANT  NO.  Composite              EST.  BY  Thompson  A  Lichtner  Co.            DATE  4-30-il 

>  ©+(D  +  <D  =  @  Exceii 
"XXX  Go° 

,nt-0%  Waste    poor  -  60%  Waste                      a  +  b  +  c  -d  =  100% 
=40°fo  £       Bad  "  8D°'°    •"                         e  +  f  +  g=  h  =  °/0  Waste 

CAUSES 

Guide 

RESPONSIBILITIES 

TOTAL  WASTE 

for 

LABOR 

OUTSIDE  CONT    ACTS 

—  1 

Points 
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Feld 
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Est.°/o 
Wast* 

Points 
Waste 

Assigned 
Points 

Est.°lo 
Waste 

Points 
Waste 

Points 

ORGANIZATION 

Mechanism  of  Industry  astoType,Methods(PaperWork)and  Personnel, 
Assignment'and  Discharge  of  Rens'obility  and  Relationship 

Kl 

0.25 

40 

0.10 

0.00 

0.00 

0.00 

0.00 

0.00 

0.00 

0.10 

K2 

0.25 

— 

60 

:   0.15 

0.00 

— 

0.00 

0.00 

0.00 

— 

0.00 

0.00 

25 

0.15 

KJ' 

0.25 

— 

4-0 

0.10 

0.00 

— 

0.00 

0.00 

0.00 

—  - 

0.00 

00 

25 

0.10 

K4 

l.OO 

— 

60 

0.60 

0.00 

— 

0.00 

0.00 

0.00 

— 

0.00 

00 

00 

0.60 

K5 

0.50 

— 

80 

040 

0.00 

— 

0.00 

0.00 

000 

— 

000 

00 

50 

0.40 

K6 

1.00 

— 

60 

0.60 

0.00 

— 

0.00 

0.00 

0.00 

— 

0.00 

.00 

00 

0.60 

K7 

0.50 

— 

0.30 

050 

— 

80 

0.40 

0.00 

— 

000 

00 

00 

OTO 

KJ 

10.00 

—  . 

60 

6.00 

2.00 

— 

60 

0 

3.50 

— 

80 

80 

50 

10.00 

(9 

0.25 

— 

80 

0.20 

0.00 

— 

0.00 

00 

0.00 

— 

0.00 

.00 

Z5 

0.20 

(10 

3.00 

— 

40 

1.20 

1.50 

— 

60 

1.90 

0.50 

— 

20 

(.10 

00 

2.20 

II 

0.25 

— 

80 

0.20 

0.00 

— 

0.00 

.00 

0.00 

— 

0.00- 

00 

).25 

0.20 

12 

0.75 

—  • 

60 

0.45 

2.00 

— 

80 

60 

0.00 

— 

0.00 

.00 

75 

2.05 

(13 

l.OO 

— 

40 

0.40 

l.OO 

— 

60 

60 

0.25 

— 

20 

(0,5 

25 

.05 

<I4 

0.50 

— 

40 

020 

0.50 

— 

60 

30 

.25 

— 

20 

.05 

25 

0.55 

(15 

2.00 

— 

20 

040 

100 

— 

80 

)0 

).25 

— 

zo 

0.05 

2.5 

1.25 

KI6 

l.OO 



20 

02Q 

0.50 

— 

20 

0.10 

00 

-  — 

0.00 

0.00 

50 

0.30 

KIT 

3.00 

— 

40 

1.20 

3.00 

— 

60 

1.80 

.00 

— 

0.00 

0.00 

00 

3.00 

KI8 

0.00 

—  - 

0.00 

0.00 

ooo 

— 

000 

000 

.00 

— 

ooo 

0.00 

00 

000 

KI9 

0.50 

— 

40 

0.20 

0.00 

— 

0.00 

0.00 

.00 

— 

0.00 

0.00 

50 

0.20 

K20 

8.00 

— 

60 

4.80 

JOO 

— 

40 

.20 

.25 

— 

40 

0.10 

25 

6.10 

K2I 

l.OO 

•  — 

20 

0.20 

0.00 

— 

0.00 

0.00 

.00 

— 

0.00 

0.00 

00 

0.20 

TOTAL 

35.0 

17.90 

15.0 

8.90 

5.0 

3.15 

bjBb.O 

6  29.95 

TECHNICAL 

Available  Engineering  Knowledge 
as  to  Product,Plant<md  Materials 

Tl 

0.25 

— 

TO 

o.io 

0.00 

— 

0.00 

0.00 

0.00 

— 

0.00 

.00 

0.25 

0.10 

'2 

4.50 

— 

40 

1.80 

0.00 

— 

o.oo 

o.oP 

0.00 

— 

0.00 

.00 

4.50 

.80 

T3 

0.25 

— 

40 

0.10 

o.oo 

— 

0.00 

0.00 

0.00 

— 

0.00 

00 

'0.2B 

0.10 

T4 

l.OO 

__ 

40 

0.40 

0.00 

— 

0.00 

000 

025 

— 

40 

10 

.25 

050 

"5 

0.50 

— 

20 

0.10 

025 

— 

40 

0  to 

000 

— 

000 

00 

075 

020 

Te 

025 

— 

40 

0.10 

0.00 

— 

0.00 

0.00 

0.00 

— 

0.00 

.00 

0.25 

010 

Oi5 

— 

40 

0.10 

0.00 

— 

0.00 

0.00 

2.50 

— 

60 

50 

275 

160 

TOTAL 

7.00 

2.70 

0.25 

0.10 

2.75 

I.SO 

b':i'.,  j 

f|4.40 

XTI  ON 

ledge  and  Organization, 
ng  Factors 

Ul 

l.OO 

— 

40 

0.40 

0.00 

— 

0.00 

ooo 

0  SO 

— 

40 

020 

1.50 

0  60 

(12 

0.50 

— 

20 

0.10 

0.00 

— 

000 

0.00 

0.25 

— 

40 

0.10 

.0.15 

020 

t  3 

l.OO 

— 

80 

0.80 

0.00 

— 

0.00 

0.00 

0.00 

— 

0.00 

0.00 

l.OO 

0.80 

U4 

7.00 

— 

60 

4.20 

0.50 

— 

0.30 

00 

— 

0.00 

000 

4  50 

U5 

0.00 

— 

0.00 

0.00 

0.00 

— 

0.00 

000 

0.00 

—  - 

0.00 

0.00 

0.00 

o.oo 

LJ6 

2.50 

— 

60 

1.50 

0.00 

— 

0.00 

ooo 

000 

— 

0.00 

0.00 

2.50 

U7 

1.50 

— 

40 

0.60 

0.00 

— 

0.00 

0.00 

000 

— 

0.00 

ooo 

1.50 

U8 

l.OO 

— 

60 

0.60 

000 

— 

0.00 

0.00 

0.00 

— 

0.00 

0.00 

l.OO 

U9 

3.00 

— 

80 

?.40 

0.00 

— 

0.00 

0.00 

0.00 

— 

000 

000 

3.00 

110 

l.OO 

— 

40 

(HO 

3.00 

— 

60 

.80 

2.00 

— 

60 

1.20 

6.00 

3.40 

U  1 

l.OO 

— 

20 

0.20 

o.oo 

— 

0.00 

0.00 

0.00 

— 

000 

000 

U2 

3.00 

_ 

60 

1.80 

0.00 

— 

0.00 

0.00 

B.OO 

— 

40 

0.80 

5.00 

J.60 

sll 

UI4 

0.00 

- 

0.00 

o.oo 

q.oo 

- 

000 

000 

0.00 

- 

ono 

nnn 

0.00 

0.00 

h  -F,  ? 

UI6 

l.OO 

_ 

040 

0.50 

_ 

40 

0.20 

0.50 

_ 

200 

U7 

OSQ 

— 

JO 

0.10 

0.00 

— 

0  00 

000 

O.i5 

— 

20 

0.05 

0.15 

0.15 

I 

Effectiveness  of  Te 
Direct!  on,  Control  a 

_£LOO_ 

_aoo_ 

0'CO 

TOTAL 

25.0 

13.70 

4.00 

e.jo 

6.00 

5.65 

C  35.00 

9  18.65 

GRANDTOTAL 

67.0 

34.30 

19.25 

11.30 

13.75 

1.4-0 

d  100.0 

h  53.00 

92 


WASTE  IN  INDUSTRY 


FIELD    REPORT  EVALUATION 

COMMITTEE   ON     ELIMINATION   OF   WASTE  IN    INDUSTRY 
AMERICAN    ENGINEERING     COUNCIL 
OF 
THE    FEDERATED    AMERICAN     ENGINEER  NG    SOCIETIES 

INDUSTRY  Building               PLANT  ^.Contractor  fl         EST.BY  -Thompson  erLichtntr  Co.             DATE  4-30-21 

v.    ®  -t-  (f)  +  (9)  -®  Excellent  •O'HoWasti 

s      Poor  «  60%Waste                 a  +  b  +  c  *  d  =  I00°/o 
Bad-80°/o    »                     e  +  f+.g-h>    °/o  Waste 

8 

Guide 

RESPONSIBI  LITIES 

TOTAL  WASTE 

for 

MANAGEM  ENT 

LABOR 

OUTSIDE     CONTRACTS 

Assigned 

Points 
Waste 

Field 
Investi- 

tesigned 
Poinb 

Est.fo 
Waste 

Points 
Waste 

^inh 

Est.o/o 
Waste 

Points 
Waste 

^h 

Est.°/o 
Waste 

Points 
Mutt 

gator 

6 

£ 

_- 

Kl 

0.25 

ZO 

0.05 

0.00 

— 

0 

0 

0.00 

o 

o 

025 

0.05 

| 

KJ 

azs 

- 

20 
ZO 

M5 
0.05 

- 

o 

0 

0.00 

- 

0 

0 

025 

0.05 

ii 

K5 

IPO 

—  ^  — 

0 

0.00 

—      - 

0 

0.00 

0 

0 

0.50 

ooo 

K6 

i.ob 

— 

ZO 

0.00 

0 

0 

0.00 

— 

o 

> 

1.00 

0.20 

Kl 

aw 

— 

40 

050 

— 

80 

040 

0.00 

— 

0 

0 

1.00 

0.60 

K8 

10.00 

- 

40 

0 

2.00 

— 

60 

120 

5.50 

— 

80 

2-80 

15.50 

600 

•n 

KIO 

Ul 

- 

0 

.50 

- 

ZO 

0.50 

0.50 

- 

ZO 

aio 

040 

»  A  N  1  Z  ATI  C 

toType,Methods( 
e  of  Responsibilit 

KIZ 

0.15 

-r— 

40 

2.00 

_ 

80 

1.60 

0.00 

—  =  —  ' 

0 

0 

7.15 

190 

KI5 

1.  00 

— 

0 

00 

— 

20 

0.20 

0.25 

— 

20 

0.05 

t.25 

KI4 

0.50 

— 

20 

0.50 

— 

20 

0.10 

0.25 

— 

40 

0.10 

1.25 

050 

KI5. 

zoo 

— 

0 

— 

20 

0.20 

0.25 

— 

zo 

0.05 

525 

0.25 

KI6 

100 

— 

40 

050 

— 

40 

0.20 

0-00 

— 

0 

0 

1-50 

0.60 

KI8. 

000 

—=  — 

0 
0 

5.00 
040 

~ 

20 

0.60 

0.00 

~ 

0 

0 

6TO 
0.00 

O.SO 
040 

51} 

o-fcf 

KI9 
KSO 

0.50 
800 

- 

0 

?o 

.60 

0.00 

5.00 

.._. 

20 

0.60 

O.Z5 

- 

20 

0.50 

"•25 

2.10 

if 

_KZI  

_LOO_ 

70 

_OjO_ 

_OJO_ 

—  

—  00_ 

— 

TOTAL 

15.0 

1.20 

15.00 

5.40 

5.0 

5.60 

OJ55.0 

e  b.:o 

£.•5 

Tl 

0.25 

— 

0 

0 

0.00 



0 

0.00 

— 

0 

0.25 

0-00 

TZ 

4.60 

— 

20 

0.90 

00 

0 

0.00 

— 

0 

450 

TECHNICAL 

Available  Engineering  Knowledc 
losto  Product,Plantand  Mater: 

T3 

0.25 

— 

0 

0 

00 

__ 

0 

0.00 

— 

0 

0.25 

T4 

1.00 

— 

20 

O.ZO 

oo 



0 

025 

— 

40 

0.0 

125 

050 

T» 

050 

— 

0 

0 

25 



0 

0.00 

— 

0 

0.15 

0.00 

T6 

0.25 

_ 

20 

0.05 

00 

^_ 

o 

0.00 

— 

0 

0.25 

0.05 

TT 

0.2S 

— 

0 

0-00 

00 



0 

Z.50 

— 

60 

1.50 

2.15 

1.50 

TOTAL 

1.0 

1.15 

0.25 

0.00 

2.15 

1.60 

b  ::o 

f|,,5 

1 

'c 

UZ 

0.50 

^^ 

0 

0 

OflO 

—  ' 

0 

0 

025 

—  — 

40 

0.10 

0.15 

0.10 

U5 

1.00 

— 

60 

0.60 

0.00 



0 

0 

0.00 

— 

0 

0 

1.00 

0.60 

U4 
U5 

1.00 

aoo 

-=- 

ZO 
0 

.40 
0 

D.SO 
0.00 

-^~ 

40 

0.20 

aoo 

" 

0 

1.50 

aoo 

160 
OOP 

'1  LI  Z  AT  1  0  N 

chnical  Knowledge  and  Orga 
jnd  Accounting  Factor* 

UT 
U8 

•1.59 
1.00 

- 

ZO 
60 

0.60 

0.00 

0 

0 

0.00 

0 

0 

1.00 

050 
060 

US 

5.00 

— 

70 

0.60 

0.00 

- 

0 

0 

0.00 

— 

0 

0 

060 

UIO 

1.00 

— 

40 

C4? 

5.00 

— 

60 

1,80 

Z.OO 

— 

60 

1.20 

6.00 

5.40 

UM 

1.00 

— 

20 

0.20 

0.00 

— 

0 

o 

o  .-.-, 

— 

0 

0 

1.00 

0.20 

UI2 

300 

—  . 

40 

120 

0.00 

— 

0 

0 

1  "'•> 

— 

40 

0.80 

500 

2.00 

UI5 

0.00 

— 

0 

0 

0.00 

— 

0 

0 

000 

— 

0 

0 

0.00 

000 

UI4 

OQO 

— 

0 

0 

O.oo 

— 

0 

0 

0.00 

— 

0 

0 

000 

"  -  -> 

UI5 

1.00 

— 

ZO 

0.20 

0.00 

— 

0 

0 

0.50 

20 

0.10 

1  50 

0-50 

UI6 

1.00 

— 

20 

0.20 

yg 

— 

40 

0.20 

050 

— 

40 

070 

2.00 

060 

un 

0.50 

— 

20 

0.10 

000 

- 

0 

o 

0.25 

— 

40 

US 

0.15 

0-20 

IU1 

Effectiveness  of  Te 
Direction,  Control 

000 

TOTAL 

25.0 

6JC 

4.0 

2.20 

6.00 

.•-3 

c  }s: 

h^O.15 

GRAND  TOTAL 

61.0 

146* 

19.25 

160 

15.15 

1.90 

dj.00, 

THE  BUILDING  INDUSTRY  93 

that  no  progress  can  be  made  without  paying  greater  and  greater  attention 
to  the  elimination  of  waste. 

Never  in  the  history  of  our  country  was  it  so  important  that  certain 
fundamental  principles  of  economics — principles  which  are  not  mere 
theories,  but  are  based  positively  on  facts — should  be  accepted  and 
established  as  a  working  program.  These  principles  will  throw  over- 
board the  fallacy  that  restricting  production  can  make  the  work  go  farther, 
and  will  supplant  this  with  the  knowledge  that  to  get  one  must  give, 
that  to  receive  the  equivalent  must  be  given  in  money  or  in  time  or  in 
effort,  and  that  increased  returns  can  only  be  attained  through  increased 
production. 

ACKNOWLEDGMENT 

In  the  development  of  this  report,  about  106  builders  and  architects 
were  consulted  either  personally  or  by  correspondence.  Various  labor 
union  officials  and  individual  workmen  were  interviewed  and  furnished 
data  from  personal  experience.  The  F.  W.  Dodge  Company,  The  National 
Safety  Council,  the  Massachusetts  Rating  and  Inspection  Bureau,  the 
National  Council  of  Workmen's  Compensation  Insurance  of  New  York 
and  various  accident  liability  companies  aided  in  providing  statistics. 
Statistics  from  other  sources  were  obtained,  although  it  was  found  that 
both  government  and  state  records  were  sadly  at  fault  in  quantity,  kind, 
and  accuracy  of  data.  Mr.  D.  Knickerbacker  Boyd,  Mr.  W.  S.  Hays 
of  Philadelphia,  and  the  Building  Trades  Council  of  Philadelphia  provided 
material  of  particular  value.  The  Associated  General  Contractors  of 
America  also  furnished  information  of  interest,  as  did  the  National 
Federation  of  Construction  Industries. 

Some  278  questionnaires,  prepared  by  us  especially  for  the  building 
trades  and  designed  to  cover  all  items  in  the  formal  questionnaire  that 
applied  to  this  industry,  were  given  out  and  replies  were  recorded  on  73 
of  these.  The  builders  thus  consulted  were  located  all  over  the  country, 
especial  attention  being  paid  to  representative  cities  such  as  New 
York,  Boston,  Philadelphia,  Baltimore,  Chicago,  Cleveland,  Atlanta, 
and  San  Francisco. 

Appreciation  is  extended  to  engineers  associated  with  the  author's 
firm  who  carried  on  the  research  for  us.  Mr.  J.  J.  Keane  conducted  the 
major  part  of  the  inquiry,  and  is  largely  responsible  for  the  wealth  of 
material  obtained.  Mr.  D.  J.  Grant  and  Mr.  Earle  B.  Eldredge  also 
aided  effectively  in  interviews  and  attendance  at  the  hearings  of  the 
Boston  Chamber  of  Commerce  on  the  building  situation  and  in  the 
preparation  of  the  diagrams.  A  part  of  the  territory  was  covered  by  Mr. 
William  E.  Curley,  and  his  advice  and  experience  on  construction  man- 
agement was  utilized  in  the  selection  of  data  and  the  framing  of  conclusions. 

SANFORD  E.  THOMPSON. 


94 


WASTE  IN  INDUSTRY 


CHAPTER  VI 
THE  MEN'S  READY-MADE  CLOTHING  INDUSTRY 

By  MORRIS  LLEWELLYN  COOKE 

INTRODUCTION 

The  outstanding  fact  of  the  men's  ready-made  clothing  industry  is 
that  it  is  alive  from  top  to  bottom.  Everything  is  in  flux — everything 
is  in  review.  We  know  of  no  other  industry  so  open  to  conviction  or  where 
a  movement  for  the  elimination  of  waste  will  get  such  an  immediate  and 
wide-spread  and  sympathetic  hearing  from  employers  as  well  as  from 
employees. 

In  reading  this  report,  it  should  be  borne  in  mind  that  this  is  a  study 
in  waste.  There  is  much  that  is  fine  and  inspiring  and  promising  in  the 
clothing  industry.  My  hope  is  that  no  one  will  think  that  in  doing  my 
job — which  was  to  analyze  the  weakness  of  the  industry — I  for  one 
moment  forgot  all  the  good  in  an  industrial  stiucture  that  affords  the 
livelihood  for  a  million  of  my  fellow  countrymen. 

The  Men's  Clothing  Industry. — The  men's  clothing  industry  is  con- 
centrated chiefly  in  New  York,  Chicago,  Rochester,  Baltimore,  Cleveland, 
Boston  and  Philadelphia.  The  total  value  of  its  output  in  1919  was 
$1,158,006,904  and  the  number  of  establishments  5,254.  An  important 
feature  of  the  industry  is  that  many  establishments  manufacture  clothing 
on  a  contract  basis  from  materials  furnished  by  others.  About  one-half 
of  the  establishments  are  regular  factories  and  one-half  contract  shops. 

In  New  York,  however,  which  leads  in  the  manufacture  of  men's 
clothing,  less  than  100  "  inside  "  tailoring  factories  existed  in  1919  and 
there  were  about  1,970  contracting  shops. 

The  census  for  1919  shows,  for  the  country  as  a  whole,  the  value  of 
output  of  regular  factories  as  $1,079,024,493  and  the  output  of  contract 
shops  as  $78,982,411. 

Extent  of  and  Responsibility  for  Waste. — The  most  waste  takes  the 
form  of  seasonal  shut-downs,  partial  or  complete:  If  the  waste  of  the 
displaced  labor  due  to  these  shut-downs  is  commensurate  with  that  of  the 
displaced  plant  capacity  and  were  it  confined  to  one  part  of  the  year  and 
divided  equally  among  all  the  clothing  workers,  they  would  have  oppor- 

95 


96  WASTE  IN  INDUSTRY 

tunity  for  one  full  term  at  school  each  year.  This  seasonal  irregularity 
accounts,  on  the  average,  for  nine  wasted  hours  in  every  working  week. 
At  least  ten  hours  more  is  thrown  away  on  energy-wasting  and  time- 
wasting  shop  methods,  while  another  two  or  three  hours  can  easily  be 
gained  by  simply  cutting  out  unnecessary  work.  In  this  report  waste 
attributable  to  management,  to  labor,  and  to  outside  contact  will  be 
discussed  in  turn. 

I.  WASTE  ATTRIBUTABLE  TO  MANAGEMENT 
The  fundamental  causes  of  waste  attributable  to  management  are: 

1.  The  sell-then-make  policy. 

2.  Lack  of  standardization  of  appliances,  conditions,  work  content,  and  method. 

3.  Inefficient  planning  and  administration. 

1.  The  Sell-Then-Make  Policy.— The  most  fundamental  cause  of 
waste  is  the  traditional  fear-inspired,  order-enticing  sales  policy  which 
expresses  itself  in  wide  variety,  and  its  attendant  make-to-order  basis 
of  manufacturing.  The  trend  in  recent  years,  due  to  the  desire  of  the 
manufacturers  to  stimulate  additional  demand  and  their  fear  of  losing 
ground  to  competitors,  has  been  toward  an  increasing  number  of  styles 
of  young  men's  suits  and  of  varieties  of  cloth.  One  concern  in  a  recent 
season  offered  its  customers  29  stock  models  of  sack-suits  and  also  made 
up  suits  in  14  special  models  designed  by  certain  customers.  Each  of 
these  was  offered  in  3  styles  of  lining  construction,  3  combinations  of  lin- 
ing material  and  in  nearly  1,100  varieties  of  cloth.  Thus  each  purchaser 
had  a  free  choice  among  278,000  possible  combinations.  While  this  case 
is  extreme  it  is  only  the  extreme  of  a  widespread  trend.  (See  Figures  1-4.) 
But,  fortunately,  a  few  manufacturers  have  seen  the  absurdity  of  thus 
conducting  a  ready-to-wear  business  almost  on  a  make-to-measure 
basis  and  have  successfully  inaugurated  the  opposite  policy  of  limiting 
variety. 

The  natural  accompaniment  to  this  excessive  variety  is  manufacture 
only  to  fill  sales  orders  actually  in  hand — the  sell-then-make  policy. 
This  is  a  negative  easy-going  procedure  in  any  event.  But  with  this  great 
variety  of  style  offered,  and  without  a  tabulation  and  statistical  study 
of  sales  data  which  is  necessary  for  any  dependable  forecast  of  the  prob- 
able relative  popularity  of  the  various  styles,  sell-then-make  becomes 
the  only  safe  manufacturing  basis.  This  sales  and  manufacturing  policy 
of  the  men's  ready-made  clothing  industry  has  vast,  far-reaching  and 
ramifying  effects,  both  economically  and  socially : 

(a)  It  permits  manufacture  only  in  small  lots. 

(6)  It  necessitates  seasonal  production,  the  bunching  of  a  large  part  of  production 
into  two  short  periods 


THE  MEN'S  READY-MADE  CLOTHING  INDUSTRY 


97 


CHARTS  SHOWING  DISTRIBUTION  OF  SALES  AMONG  MODELS 

Excessive  variety  of  product  keeps  production  on  a  small  lot  basis.      This  variety 
coupled  with  a  policy  of  manufacturing  only  to  fill  orders  received  also  causes  produc- 
tion to  come  in  marked  seasonal  waves  alternating  with  slack  seasons  of  extensive 
unemployment. 

One  manufacturer  offered  his  customers  choices  from  29  stock  models  of  men's 
and  young  men's  sack  suits  and  also  made  up  suits  in  14  special  models  designed 
by  certain  customers.  Each  of  these  was  offered  in  three  styles  of  lining  construction, 
three  combinations  of  lining  material  and  in  over  1,000  cloth  styles. 

The  effect  of  this  great  variety  upon  the  size  of  manufacturing  lots  is  shown  in 
Fig.  5.  The  marked  wave  character  of  this  firm's  employment  is  pictured  in  Fig.  8. 

That  the  public  does  not  really  demand  so  great  variety  is  evidenced  by  the  fact 
that  11  of  these  models  account  for  93  per  cent  of  the  total  sales. 

The  sales  of  25  of  the  remaining  models  are  so  small  that  they  cannot  really 
be  represented  in  this  chart. 


ERH 


SACK  SUITS 
FIG.  1. 


SACK  SUITS 


SAF 


FIG.  2. 


OVERCOATS 


This  manufacturer  offers  31  models  of  sack  suits  and  26  of  overcoats.  But  the  great 
bulk  of  demand  concentrates  on  a  comparatively  few  models. 

This  manufacturer  offers  only  two  men's  and  six  young  men's  suit  models,  each 
in  less  than  300  cloth  styles.  Two-thirds  of  his  sales  concentrate  on  three  models. 
This  enables  him  safely  to  make  up  suits  of  these  models  for  stock  between  seasons  and 
thus  operate  his  plant  continuously  at  full  capacity;  also  to  cut  in  lots  averaging  128 
suits  each. 


PMJ 


SACK  SUITS  OVERCOATS 

FIG.  4. 

This  manufacturer  offered  22  models  of  sack  suits  and  20  models  of  overcoats,  each 
of  which  was  offered  in  over  1000  styles  of  cloth.  One  model  in  each  accounts  for  nearly 
or  quite  half  of  all  his  business.  He  has  a  wonderful  opportunity  to  eliminate  slack 
seasons  by  manufacturing  these  models  for  stock. 


98  WASTE  IN  INDUSTRY 

(a)  Small  Lots. — The  concern  in  the  case  mentioned  above  manufac- 
tures 400,000  suits  a  year  in  lots  averaging  12  garments  each  (see  Figure 
5);  rarely  exceeding  20  garments,  and  an  astonishing  proportion  of  them 
are  of  6,  5,  4,  3  and  even  2  garments  each. 

Operating  Wastes. — In  the  operations  requiring  matching  of  colors, 
it  tak^s  no  longer  to  change  thread  for  a  bunch  of  100  than  for  a  bunch  of 
2;  nor  does  it  take  longer  to  open  and  arrange  bundles  of  garment  parts, 
read  instructions,  bundle  them  up  again,  and  so  on.  Probably  the 
greatest  loss,  however,  comes  from  the  effect  upon  the  worker's  skill 
through  frequent  interruptions  of  the  rhythm  of  his  work.  In  the  case 
cited,  the  work  assignments  were  so  short  that  one  worker  out  of  every 
five  was  interrupted  at  least  once  every  six  minutes,  and  two  out  of  every 
three  were  interrupted  from  one  to  six  or  seven  times  every  half  hour. 
Other  manufacturers  try  to  overcome  this  trouble  by  combining  garments 
of  various  cloth  shades  in  one  lot.  This  is  effective  in  part. 

Administrative  Wastes. — Such  small  sized  lots  make  effective  shop 
planning  and  administration  so  expensive  that  manufacturers  dispense 
with  it.  From  80  to  150  operations  are  involved  in  making  a  sack  coat, 
according  to  the  way  in  which  the  whole  process  is  divided  up.  To  pro- 
vide individual  work  tickets,  an  order  of  work,  adequate  inspection  and 
move  orders  for  lots  of  1,  2,  3,  4,  5  or  even  12  garments  means  a  prohibi- 
tive expense.  Most  of  these  procedures  involve  no  more  expense  for  a 
lot  of  100  or  500  than  for  a  lot  of  3.  Furthermore,  less  time  of  operators 
and  clerks  will  be  consumed  in  changing  assignments  of  work  in  case  of 
the  large  lots;  for  with  the  small  lots  there  is  bound  to  be  a  large  amount 
of  waiting  turns.  With  large  lots,  the  expense  of  the  method  just  men- 
tioned is  a  negligible  factor,  counterbalanced  many  times  over  by  their 
benefits.  With  small  lots  the  expense  looms  relatively  so  large  that  the 
manufacturer  has  not  the  courage  to  incur  it. 

The  result  of  dispensing  with  effective  shop  planning  is  a  considerable 
loss  of  plant  capacity  and  of  workers'  time  and  earnings  through  shop 
idleness  caused  either  by  whole  sections  of  operatives  running  out  of  work 
or  by  failure  of  certain  auxiliary  materials  to  appear — lack  of  co-ordination 
of  production  in  the  various  parallel  sequences.  In  our  visits  to  plants 
manufacturing  in  small  lots  we  usually  observed  a  large  part  of  the  forces 
on  several  operations  waiting  for  work.  Picture  for  instance  45  collar- 
makers  delivering  their  finished  coats,  registering  their  numbers  in  a 
column  in  a  book,  in  order  to  establish  the  sequence  in  which  they  were 
to  be  served  with  work,  and  then  twiddling  their  thumbs  until  their 
numbers  were  called,  or  standing  in  line  before  the  hanger  sewers'  machines 
and  snatching  the  coats  one  by  one  as  they  fall.  All  this  occurred  at  the 
height  of  the  manufacturing  season  when  foremen  were  being  taken  to  task 
for  not  getting  out  output. 


THE  MEN'S  READY-MADE  CLOTHING  INDUSTRY 


99 


CHARTS  SHOWING  NUMBER  OF  GARMENTS  IN  CUTTING 
LOTS. 


Garments  per  Lot 
FIG.  5. 

This  manufacturer  of  men's  and  young  men's  sack 
suits  offers  a  great  variety  in  model  and  cloth  style  and 
ordinarily  manufactures  only  to  fill  orders. 

This  policy  causes  production  to  take  place  in  small 
lots  as  here  shown.  Rarely  do  manufacturing  lots  exceed 
20  garments  to  the  lot  and  an  astonishing  proportion  of 
them  are  in  lots  of  7,  6,  5,  4,  3  and  even  2  garments  each. 
Observe  that  far  more  orders  are  of  3  garments  each  than 
of  any  other  size. 


100 


WASTE  IN  INDUSTRY 


Extent  of  Waste  Due  to  Small  Lot  Manufacture. — The  amount  of 
waste  due  to  small  lot  manufacture  varies,  of  course,  with  the  size  of  the 
plant,  but  one  production  engineer,  who  has  been  through  the  process  of 
installing  effective  planning  and  administrative  mechanism  in  a  large 
plant,  estimates  that  without  it  about  one-fifth  of  all  the  operatives' 
time  is  wasted.  Excessive  variety  of  product  and  the  sell-then-make 

CHARTS  SHOWING  WEEK  TO  WEEK  FLUCTUATIONS  IN  PERSONNEL  IN  CUTTING  DEPART- 
MENTS. 

All  garments  must  be  "cut"  before  being  "tailored."  Hence  these  charts,  which 
represent  the  week  to  week  changes  in  the  number  of  cutters  in  the  employ  of  these 
clothing  manufacturers,  picture  the  pronounced  seasonal  character  of  this  industry. 


1917 

1918       j       1919 

1920                           1917               1918 

1919               1920 

90    ^   ]•••!•• 

.                               t\. 

'/I         A 

/  lv«  s       \\ 

TO         {- 

Y.  

'.'.  *«  "i  :  ::    ij" 

<~>  50    

.  £                "t 

fc  5° 
o-  40 

*;   

° 

BOB 

FIG.  7. 

Composite  chart  showing  fluctuations  in 
twelve  New  York  cutting  departments. 


FIG.  9. 

Fluctuations  in  another  cutting  depart- 
ment. 


FIG.  8. 


FIG.  10. 


Fluctuations  in  one  cutting  department.      Fluctuations  in  a  third  cutting  department. 

manufacturing  policy  really  block  effective  planning  and  administration 
of  factory  work,  causing  not  merely  shop  idleness  but  other  wastes  as  well. 
(6)  Seasonal  Demand. — Secondly,  this  sell-then-make  policy  puts 
manufacturing  at  the  mercy  of  the  seasonal  demand,  bunching  a  large 
part  of  production  into  two  short  periods  each  year  interspersed  with 
many  weeks  of  reduced  operating  forces  and  part  time  operation.  (See 
Figures  7-18.)  How  intense  this  seasonal  bunching  is,  is  indicated  by 


THE  MEN'S  READY-MADE  CLOTHING  INDUSTRY 


101 


the  fact  that  in  eight  representative  plants  investigated  in  Baltimore, 
Chicago,  and  New  York  the  average  plant  utilization  over  a  period  of  three 
years  was  only  69%  of  a  possible  maximum.  In  one  plant  it  was  only 

58%. 

CHAKTS  SHOWING  MONTH  TO  MONTH  FLUCTUATIONS  IN  TOTAL  WORKING  FORCES. 


100 

90 
80 
10 

4=60 
350 
£40 


1918  1919 

14 5 6 -18910111?  I Z  34  S61  69  0    ;  1 1      S^      6 


FIG.  11. 


)0 
80 
10 


FIG.  12. 


This  chart,  which  pictures  the  month  to  month 
fluctuations  in  the  total  working  force  of  another 
clothing  manufacturer,  shows  a  slack  season  in 
October  and  November,  1918,  another  in  March, 
April  and  May,  1919,  and  the  oncoming  industrial 
depression  commencing  after  May,  1920. 


This  chart  shows  the  month  to  month  fluctua- 
tions in  the  total  number  of  persons  on  the  pay- 
roll of  another  manufacturer  of  men's  ready-to- 
wear  clothing.  It  does  not  show  the  typical 
seasonal  fluctuations  hi  employment,  but  rather 
those  longer  period  fluctuations  due  to  change  of 
status  of  the  industry  from  war  work  in  1918  to  an 
uncertain  peace-time  production  after  the  Armis- 
tice, followed  by  the  period  of  abnormal  demand 
for  clothing  in  the  latter  half  of  1919  and  early 
1920  and  culminating  in  the  industrial  depression 
in  the  latter  half  of  1920. 


1918 


This  chart  shows  what  can  be  accomplished  by  a  manufacturer  who  sincerely, 
resolutely  and  intelligently  sets  out  to  manufacture  for  stock  and  adopts  an  aggressive 
positive  sales  policy.  The  working  force  declined 
slightly  in  the  latter  half  of  1918  and  again  in  the 
latter  part  of  1919.  But  the  average  force  is  only 
6%  under  the  maximum.  These  declines  were  due 
to  the  competition  of  the  war-working  industries 
in  1918  and  to  the  return  of  soldiers  to  claim  their 
wives  and  sweethearts  in  1919.  In  the  latter  half 
of  1920,  when  other  clothing  manufacturers  were 
shutting  down  their  factories  because  of  industrial 
depression,  this  establishment,  which  is  operated 
under  scientific  management,  kept  its  force  operating 
at  nearly  full  capacity. 


/' 

,-'' 

-t  . 

^10  -'--^  = 


FIG.  13. 


The  seasonal  demand  is  caused  not  so  much  by  the  ultimate  pur- 
chasers' bunching  their  buying  in  the  early  Autumn  and  just  before  Easter 
as  by  two  facts  concerning  the  retail  dealer:  he  does  not  wish  to  receive 
his  merchandise  before  the  beginning  of  his  sales  season;  and  secondly, 
partly  through  established  tradition  and  habit,  partly  because  of  fear  of 


102 


WASTE  IN  INDUSTRY 


£40 
30 
20 
10 


1919 


CHARTS  SHOWING  MONTH  TO  MONTH  FLUCTUATIONS  IN  PRODUCTION. 

These  charts  picture  the  very  spectacular  ups  and  downs,  month  by  month,  of  the 
average  daily  production  of  garments  in  the  factories  of  certain  manufacturers  of  men's 
ready-to-wear  garments.  Fig.  1  shows  the  tremendous  fluctuations  in  overcoat  pro- 
duction by  a  certain  concern;  Fig.  2  the  sack  coat  (and  trousers)  production  of  the  same 
firm.  Fig.  3  represents  the  fluctuations  in  the  total  garments  of  another  concern. 

The  great  bulk  of  overcoats  production  is  for 
winter  use.  Hence  there  are  slack  seasons  of  a  half- 
year's  duration.  Unfortunately,  the  overcoat  season 
coincides  largely  with  the  heavy  weight  sack  suit 
season.  The  solution  is  either  to  manufacture 
for  stock  during  the  half  year  slack  seasons  or 
develop  a  dove-tailing  business  to  which  to  transfer 
the  overcoat  facilities  and  force. 

The  same  volume  of  output  if  spread  uniformly 
over  the  year,  could  have  been  produced  with — 


FIG.  14. 


70%  less  plant  capacity  in  1918 
79%  less  plant  capacity  in  1919 
86%  less  plant  capacity  in  1920 


Here  the  seasonal  aspect 


4-    10 

£60 

fc  W 
•-  40 
30 
20 
10 
0 


FIG.  15. 


somewhat  obscured  by  overpowering  abnormal  con- 
ditions— war-time  production  in  1918,  adjustment 
to  an  uncertain  peace-time  basis  during  the  5 
months  following  the  Armistice,  the  wholly  abnormal 
demand  for  clothing  in  1919  and  the  oncoming 
industrial  depression  in  the  latter  half  of  1920. 
However,  the  traditional  slack  seasons  are  repre- 
sented by  the  lower  production  of  the  February 
and  March  and  the  July  and  August  of  1918,  and 
the  period  from  October,  1919,  to  January,  1920 
inclusive. 

Spread  uniformily  through  the  year  this  same 
output  could  have  been  produced  with — 


31%  less  plant  capacity  in  1918 
58%  less  plant  capacity  in  1919 
66%  less  plant  capacity  in  1920 


19  8                1 

,00  IZJ4  54189    .121154 

919                1920 

618910  limS4  56189101  t 

80          :  .   

pr 

10  -  

'- 

0  

This  chart  shows  the  end  of  a  slack  season  in 
January,  1918;  another  slack  season  in  April  and 
May,  1918;  again  from  September,  1918  to  Jan- 
uary, 1919  inclusive,  accentuated  by  the  change 
from  war-time  to  peace-time  production  commencing 
with  November  of  that  year;  a  pronounced  one  in 
April  and  May,  1919,  another  in  August,  September 
and  October;  a  short  one  in  December,  1919. 


FIG.  16 


THE  MEN'S  READY-MADE  CLOTHING  INDUSTRY 


103 


being  a  bad  guesser  on  the  trend  of  fashion,  he  does  not  want  to  order 
too  long  in  advance.  For  the  latter  reason  also  the  manufacturer  waits 
until  the  last  possible  moment  before  making  a  final  decision  concerning 
the  models  to  be  shown.  Consequently,  receipt  of  the  sales  orders  pre- 
cedes the  opening  of  the  new  retail  season  by  too  brief  a  period,  and  the 
manufacturing  must  be  bunched. 

CHAKT  SHOWING  MONTH  TO  MONTH  FLUCTUATIONS  IN  PRODUCTIONS  AND  PERSONNEL. 


This  chart  pictures  in  the  lower  line,  the  seasonal  ups  and 
downs  of  production  of  another  clothing  manufacturer. 
The  upper  line  portrays  a  very  remarkable  kind  of  fluctuation 
in  the  number  of  workers  employed.  Each  peak  represents 
an  over-crowding  of  his  plant. 


FIG.  17. 


,on  I?)456189K>II«IZ3 

TT 

80  II 

! 

£450.-i..:r...: 

jLf 

t^n^      Lr  •  : 

o  .  ..."           i  1L 

,  r 

CHART  SHOWING  MONTH  TO  MONTH  FLUCTUATIONS  IN  SHIPMENTS. 


This  chart  vividly  portrays  the  marked  season- 
ality  of  a  certain  manufacturer's  shipments  of 
men's  ready-to-wear  clothing  to  the  dealers.  In 
November,  1920  the  dealers  rejected  and  returned 
more  clothing  than  was  shipped  to  them. 


FIG.  18. 

Loss  to  Manufacturers  and  Workers. — From  the  viewpoint  of  manu- 
facturing economy,  this  means  the  building  of  plant  capacity  and  training 
personnel  force  great  enough  to  take  care  of  production  at  these  seasonal 
peaks  and  then  laying  off  the  force  and  utilizing  the  plant  far  below  its 
capacity  during  the  remainder  of  the  year.  At  the  depth  of  recent  slack 
seasons  this  waste  has  run  as  high  as  80%  even  in  large  establishments, 
while  many  small  ones  have  closed  down  altogether. 

From  the  point  of  view  of  the  displaced  workers  the  effect  of  this 
seasonal  production  is  very  bad.  It  means  extensive  unemployment 
twice  a  year  (see  Figures  7  to  13,  17,  and  18),  which  while  it  averages 
only  31%  may  affect  80  to  90%  of  the  workers  at  the  depth  of  the  slack 


104  WASTE  IN  INDUSTRY 

season.  No  doubt  many  workers  migrate  to  the  tailor-to-the-trade 
houses  or  to  other  fill-in  employments;  but  with  the  best  they  can  do, 
there  must  be  great  loss  of  earning  power.  Were  these  workers  only  inani- 
mate tools,  the  waste  might  stop  with  that.  However,  they  are  living 
beings  with  family  ties,  feelings,  anxieties  and  capacity  for  suffering. 

How  All  this  Affects  the  Workers. — One  consequence  of  their  season- 
ally recurring  anxiety  and  sufferings  is  a  vast  fund  of  antagonism 
toward  their  employers  and  toward  employers  as  a  class,  which  we  may 
sum  up  under  the  designation  "  industrial  ill-will."  Another  is  a  concrete, 
practical  though  fallacious  industrial  philosophy,  namely,  the  "  make- 
work  "  theory;  i.e.,  the  belief  that  "  there  is  only  so  much  work  to  be 
done  "  and  that  the  sensible  course  for  workers  is  to  stretch  it  out  and 
make  it  last  throughout  the  year. 

These  feelings  and  beliefs  express  themselves  in  various  ways — in 
favoring  week- work  and  opposition  to  piece-work  and  all  systems  in  which 
pay  is  in  any  way  dependent  upon  individual  performance;  in  the  abolition 
in  the  week-work  markets  of  work-tickets  and  all  mechanism  for  recording 
individual  performance;  in  suspicion  of  the  manufacturer's  motives  in 
connection  with  any  mechanism  he  may  try  to  adopt,  thus  hampering 
and  even  preventing  the  installation  of  the  mechanism  necessary  for  the 
most  effective  planning  and  administration  of  factory  work. 

We  have  dwelt  at  length  upon  this  seasonal  phase  of  the  industry,  its 
causes  and  effects,  not  merely  because  it  constitutes  one  of  the  largest 
wastes,  but  also  because  it  constitutes  the  one  big  problem  that  con- 
fronts the  workers'  union  and  for  which  they  are  demanding  a  satisfac- 
tory solution.  And  until  they  see  promising  progress  being  made  in  this 
direction,  industrial  ill-will  will  not  only  grow  but  will  retard  and  in  some 
places  block  the  introduction  of  measures  necessary  for  eliminating  other 
wastes,  big  and  little. 

Recommendations. — The  chief  cause  of  seasonal  unemployment  we 
have  seen  to  be  the  sell-then-make  basis  of  manufacture,  which  in  turn 
is  largely  dictated  by  the  excessive  variety  in  styles  of  product.  What 
seems  to  be  needed  is  for  each  manufacturer: 

(a)  To  limit  the  number  of  models  and  cloth  styles. 
(6)  To  bridge  the  slack  seasons  by  manufacturing  for  stock, 
(c)  To  adopt  vigorous,  positive  selling  methods,  backed  up  by  effective  national 
advertising. 

(a)  Limiting  Number  of  Models. — Study  of  sales  statistics  indicates 
that  neither  the  consuming  public  nor  the  dealers  really  demand  such 
excessive  variety.  In  one  case,  eleven  out  of  thirty-one  sack  suit  models 
accounted  for  78£%  of  the  total  sales.  (See  Figure  2.)  In  another,  nine 
out  of  twenty-two  models  accounted  for  94%  of  the  sales  and  one  model 
alone  accounted  for  50%.  (See  Figure  4.)  In  a  third,  eleven  out  of 


THE  MEN'S  READY-MADE  CLOTHING  INDUSTRY  105 

forty-three  models  accounted  for  94%  of  the  sales,  while  the  sales  of 
twenty-five  of  the  remaining  models  ranged  from  1%-  of  1%  down  to 
TTrVo'  of  1%.  (See  Figure  1.)  Most  of  the  multiplicity  of  models  seems 
to  represent  the  manufacturer's  effort  to  entice  a  little  additional  business 
— business  that  must  be  unprofitable  on  such  a  minute  scale. 

(b)  Bridging  Slack  Seasons. — All  large  clothing  houses  have  always 
done  a  considerable  amount  of  making  for  stock  during  the  slack  seasons; 
they  have  simply  reduced  their  production  to  50%  or  20%  of  normal. 
An  intelligent  study  of  their  sales  would  enable  them  safely  to  make  for 
stock  up  to  their  full  normal  output  throughout  the  year.     The  great  bulk 
of  sales,  71%  of  men's  sack  suits  and  89%  of  young  men's,  concentrate 
on  the  so-called  "  regular  "  forms  and  largely  on  five  sizes.     (See  Figures 
19  and  20.)     Every  manufacturer's  list  contains  two  or  three  models  that 
are  much  better  sellers  than  the  others.     Likewise,  there  are  a  number  of 
good  (not  freakish  and  flashy)  cloth  styles  which  the  manufacturer  can 
practically  be  sure  of  selling  in  considerable  quantities.     These  are  the 
materials  with  which  to  bridge  the  slack  seasons  by  manufacturing  for 
stock. 

Several  houses  have  found  that  the  proportions  in  which  their  sales 
of  the  first  two  weeks  of  the  sales  season  divide  themselves  among  the 
various  models  are  substantially  the  same  as  the,  proportions  for  the  entire 
season.  On  this  basis  they  estimate  the  distnhution  of  their  total  sales 
and  continue  to  manufacture  for  stock  throughout  the  year.  This  enables 
them  to  plan  all  cutting  and  manufacturing  so  as  to  secure  the  greatest 
economies  both  of  cloth  and  labor. 

(c)  Effective  Selling  and  Advertising. — In  addition  to  a  courageous, 
constructive  sales  policy,  confining  the  business  to  from  five  to  ten  well- 
chosen  models  and  200  to  300  cloth  styles  which  express  all  the  variety 
the  consuming  public  can  appreciate,  it  is  urgently  recommended  that 
the  country  be  divided  into  sales  territories,  and  that  a  definite  quota 
not  only  of  all  garments  but  of  each  model  be  assigned  to  each.     Vigorous, 
positive  salesmanship  backed  up  by  effective  national  advertising  should 
then  be  applied  to  carry  out  the  sales  policy  and  sell  the  quotas.1 

One  concern  with  such  a  three-fold  sales  policy  as  has  been  suggested 
offers  but  eight  models  of  sack  suits,  each  in  less  than  300  cloth  styles. 
It  is  able  to  cut  in  lots  averaging  128  garments  and  one  cloth  style  each. 
Contrast  this  with  average  lots  of  12  garments,  cited  in  a  foregoing  illus- 
tration. Two-thirds  of  its  sales  concentrate  on  three  of  these  models. 
The  concern  manufactures  these  three  models  for  stock  during  the  slack 

1  See  Bulletin  of  the  Taylor  Society,  Vol.  V,  No.  6,  Abstracts  of  preliminary  Reports 
of  the  Committee  on  the  Organization  and  the  Functions  of  the  Sales  Engineering 
Department  and  the  Committee  on  the  Organization  and  the  Functions  of  the  Sales 
Operating  Department. 


106  WASTE  IN  INDUSTRY 

seasons,  operates  at  nearly  full  capacity  the  year  round,  has  the  good-will 
and  hearty  co-operation  of  its  employees,  and  has  all  the  mechanism 
necessary  for  effective,  economical  planning  and  operation  of  its  plant. 
(See  Figures  1,  6,  and  13.) 

2.  Lack  of  Standardization. — The  second  fundamental  cause  of  waste 
attributable  to  management  is  a  lack  of  standardization  of  appliances, 
conditions,  work  content  and  method.  Production  can  be  carried  on 
most  effectively  only  when: 

(a)  Each  operation  is  performed  with  the  best  available  appliances;   in  other 

words,  on  machines  of  standard  design. 
(6)  Machines  are  maintained  in  proper  condition, 
(c)  The  work  content  of  operations  is  standardized. 

Men's  ready-made  clothing  is  not  for  the  most  part  manufactured  under 
these  conditions. 

(a)  Variety  of  Design. — Machines  of  a  variety  of  design  are  found  on 
the  same  operation  in  the  same  shop.  High-speed  machines  are  not  used 
in  those  operations  to  which  they  are  adapted.  Machine  and  other  work- 
place tables  are  too  short,  too  narrow  and  too  high  or  too  low  to  afford 
sufficient  elbow  room  and  comfort  for  unhampered  operation.  Only  one 
manufacturer  has  been  found  who  has  written  standard  specifications 
for  these  things,  based  on  any  real  study. 

(6)  Maintenance  of  Machines. — Furthermore,  machines  are  not  main- 
tained in  proper  operating  condition.  For  instance,  in  one  factory,  1100 
operatives  are  served  by  two  machinists,  who  are  kept  on  the  jump 
making  emergency  make-shift  repairs  out  in  the  shop  while  the  workers 
look  on  and  others  await  their  turns.  They  do  not  have  time  to  take  a 
machine  into  the  repair  shop  and  give  it  a  thorough  overhauling.  Nor 
does  the  repair  shop  contain  a  single  planer,  speed  lathe  or  drill  press. 
The  sewing  machines  are  in  run-down  condition.  Not  only  do  the  opera- 
tives, who  are  on  piece-work,  lose  production  and  earning  power  through 
these  frequent  break-downs,  but  also  through  the  low  speeds  of  their 
machines  and  the  interruptions  by  frequent  thread  breaks  that  come 
when  the  internal  mechanism  is  out  of  proper  adjustment.  Discourage- 
ment and  dissatisfaction  of  piece-workers  under  such  conditions  lead  to 
excessive  labor  turnover. 

On  the  contrary,  certain  manufacturers  maintain  well  equipped 
repair  shops  and  adequate  stock  of  spare  machines.  Instead  of  waiting 
until  machines  break  down  before  repairing  them,  all  the  machines  are 
divided  into  comparatively  small  groups,  each  group  is  put  on  a  time 
schedule,  so  that  at  regular  stated  intervals  each  machine  is  replaced  from 
the  spare  stock,  taken  into  the  repair  shop  and  the  internal  mechanism 
thoroughly  inspected  and  restored  to  proper  operating  condition.  This 


THE  MEN'S  READY-MADE  CLOTHING  INDUSTRY 


107 


not  only  forestalls  and  prevents  actual  break-down  in  large  part  but 
maintains  all  machines  in  better  operating  condition. 

(c)  Work  Content  of  Operations. — The  work  content  of  operations  is  not 
standardized.  In  one  extreme  case  45%  of  all  the  work  being  performed 
in  a  certain  lengthy  operation  was  found  to  be  unnecessary.  (See  Figures 

CHARTS  SHOWING  DISTRIBUTION  OF  SALES  AMONG  DIFFERENT  SHAPES  AND  SIZES. 


SHORT  STOUTS 

LONG  STOUTS'' 

l°/o 

SHORTS  5°lo 
LONGS  5°lo  ' 


MENS'SACK  SUITS 


STOUTS  Z%\ 
LONGS  2V 
SHORTS  4°/o 

"YOUNG  MENS  SACK  SUITS 


SHAPES 
FIG.  19. 

The  great  bulk — 86|% — of  the  demand  for  men's  and  young  men's  ready-to-wear 
sack  suits  is  for  the  "regular"  or  standard  shape  or  form.  Men's  "regulars"  concen- 
trate largely  on  5  sizes,  namely:  37,  38,  39,  40  and  42.  Young  men's  regulars  also  con- 
centrate on  5  sizes,  namely:  36,  37,  38,  39  and  40. 


MENS  REGULARS 


YOUNG  MENS  REGULARS 


SUES 
FIG.  20. 


Manufacture  of  regulars  for  stock  in  conservative  styles  in  these  sizes  and  in  a  range 
of  tasty  (not  flashy)  suitings  is  safe  up  to  such  limits  as  fully  to  bridge  the  traditional 
slack  sales  season. 

8  to  21.)  A  recognized  authority  in  the  industry,  who  has  been  through 
the  process  of  standardizing  coat  shop  operations,  estimates  that  on  the 
average  20%  of  all  the  work  traditionally  done  is  unnecessary. 

The  substitution  of  the  most  effective  method  for  the  variety   o 
inferior  methods  offers  probably  the  largest  direct  opportunity  for 
production  pick-up.     In  so  simple  an  operation  as  creasing  armhole  seam 


108  WASTE  IN  INDUSTRY 

six  different  methods  were  found  in  use  among  eleven  operators  working 
side  by  side.  The  best  of  them  turned  out  work  over  two  and  a  half 
times  as  rapidly  as  the  poorest.  The  average  productivity  of  all  was  43% 
under  that  of  the  best.  (See  Figures  22  and  23.)  The  output  and  piece- 
work earnings  of  a  certain  group  of  basting  pullers  were  doubled  by  teach- 
ing them  the  methods  of  the  best  basting  pullers  in  another  shop.  The 
authority  referred  to  above  states  that  such  waste  figures  apply  to  the  whole 
garment  making  process. 

3.  Inefficient  Planning  and  Administration. — The  third  fundamental 
cause  of  waste  attributable  to  management  is  inefficient  planning  and 
administration.  The  great  majority  of  clothing  establishments  lack  even 
the  mechanism  which  is  necessary  for  effective  planning  and  adminis- 
tration of  work.  Some  of  the  planning  is  done  by  shop  executives  or 
workers  as  an  incident  to  other  work.  Much  of  the  planning  on  cutting 
work  is  done  by  the  cutters  themselves.  Manufacturers  who  have  trans- 
ferred all  the  planning  of  cutting  to  a  planning  department  have  as  a  rule 
found  that  they  get  higher,  longer  and  more  economical  lays,  consume 
less  cloth  per  suit,  and  get  a  much  more  rapid  output. 

In  most  tailoring  shops  there  are  no  dispatching  stations  for  recording 
the  progress  of  work  and  giving  out  work  assignments,  no  work  tickets, 
consequently  no  route  sheets  or  progress  records  for  the  various  manufac- 
turing lots,  no  record  of  production  either  of  the  individual  worker  or 
operation,  no  record  of  the  balance  of  work  ahead  at  each  operation  or  of 
the  plant  as  a  whole.  Lots  of  garments  introduced  at  the  beginning  of 
the  process  drift  through  without  any  one  knowing  where  they  are.  Pro- 
duction is  measured  only  in  shipments  of  completed  garments.  Opera- 
tives either  hunt  up  their  own  work  supply  or  the  foreman  and  his  assist- 
ants, combining  the  function  of  shop  porter  with  that  of  instructing, 
inspecting,  disciplining  and  a  multitude  of  other  duties  none  of  which  are 
done  well,  watch  the  work  supply  of  each  worker  in  his  jurisdiction,  find 
and  carry  work  to  him.  Congestion  of  work  at  some  points,  idleness  at 
others  may  be  said  to  be  the  normal  conditions. 

There  are  three  indispensable  requisites  of  effective  planning  and 
administration : 

(a)  Performance  standards. 

(6)  An  up-to-the-minute  record  of  production  in  each  operation,  and  versatile 

workers, 
(c)  A  cost  system. 

(a)  Performance  Standards. — Without  standardization  of  appliances, 
conditions,  work  content,  and  method,  no  valid  performance  standard 
can  be  determined.  The  great  mass  of  clothing  factories  are  without  any 
performance  standards.  Some,  indeed,  do  use  a  stop-watch  in  timing 
operations  for  the  purpose  of  setting  piece-rates.  This  so-called  "  time 


THE  MEN'S  READY-MADE  CLOTHING  INDUSTRY 


109 


CHARTS  SHOWING  TIME  WASTED. 

The  methods  and  performances  of  11  workers  were  studied  in  these  two  operations. 
The  time  that  is  needed  by  the  best  and  easiest  method  in  each  case  is  represented  by 
the  length  in  white.  The  additional  time  needed  by  the  method  used  by  the  worker 
in  question  is  represented  by  the  cross-hatched  length.  These  workers  were  on  week 
work  and  without  incentive  to  do  their  best.  The  excess  time  each  took  over  what  was 
necessary  by  his  method  is  represented  in  solid  black.  The  methods  used  were  on  the 
average  only  57%  as  effective  as  the  best  method.  The  workers'  performances  aver- 
aged only  59%  of  what  they  could  do  regularly  by  their  methods. 

/"         "*N.  The  work  of  15  finish  pressers  were  studied  in  a  certain  coat 

/NECESSARY  \      snOp      Many  sections  of  work  done  by  some  were  not  done  by 

/ °    \    others.     Yet  all  the  coats  were  accepted  by  the  manufacturer  as 

\UNNECESSARY^~^J    properly  pressed.     Investigation  showed  that  45%  of  the  work 
WORK          /     done  was  unnecessary. 

45%        ' 


KEY  TO  CHARTS  BELOW: 

I \NECESSARYTIME 

VTA  UNNECESSARY  TIME  • 
•i  UNNECESSARY  SLOWNESS 


FIG.  21. 


COMPARISON  OF  METHODS  AND  TIME  ON  CREASING  ARMHOLE  SEAMS 
FIG.  22. — Comparison  of  Methods  and  Time  on  Creasing  Armhole 


COMPARISON  OF  METHODS  AND  TIME  ON  PRESSING  SHOULDERS 

FIG.  23. — Comparison  of  Methods  and  Time  on  Pressing  Shoulders. 


110  WASTE  IN  INDUSTRY 

study  "  almost  without  exception  seeks  to  set  tasks  and  rates  without 
any  attempt  to  standardize  the  variable  appliances,  variable  machine 
speeds,  variable  lengths  of  stitch,  and  variable  methods,  which  are  invari- 
ably encountered.  How  can  such  stints  and  their  corresponding  piece- 
rates  be  just  or  lasting?  In  fact,  such  studies  cannot  result  in  perform- 
ance standards.  Indeed,  the  piece  rates  based  on  timing  are  set  for  the 
operations  in  name  only,  there  being  no  supporting  written  description 
of  the  appliances,  conditions,  detail  of  work  content  and  methods  to 
which  the  piece  rates  refer.  In  consequence  the  piece-workers  are  able 
successfully  to  carry  on  a  continuous  process  of  reducing  the  work  con- 
tent of  operations,  even  skimping  on  quality,  and  yet  maintain  the  same 
piece-rates.  The  alleged  performance  standards  of  other  manufacturers 
which  are  based  on  "  average  past  performance  "  are  of  course  equally 
invalid  because  they,  too,  do  not  refer  to  definite  methods  and  stand- 
ardized surroundings. 

Value  of  Performance  Standards. — Properly  determined  perform- 
ance standards  are  a  very  valuable  device,  not  only  for  planning  and 
administering  production  but  for  conducting  industrial  relations  on  a 
mutually  satisfactory  basis.  Under  the  piece-rate  system  they  are  the 
basis  of  just  piece-rates.  Under  the  week-work  system  they  are  the  basis 
of  a  just  measurement  of  the  individual  worker's  performance  and  of 
adjustment  of  his  wage  rate  to  his  capacity.  One  concern  operates  under 
a  system  of  "  week-work  with  production  standards."  Owing  to  a  num- 
ber of  causes,  including  union  opposition,  these  production  standards  are 
not  based  on  careful  detailed  studies  and  standardization  of  processes, 
methods  and  the  like.  The  interesting  thing  about  them  is  that  they  are 
determined  in  a  process  of  collective  bargaining.  Furthermore,  the  week- 
work  rates  refer  to  these  standards;  indeed,  for  many  operations  there 
is  a  series  of  progressive  standards  with  a  corresponding  wage  rate  for  each. 
A  record  is  kept  of  each  worker's  performance  and  compared  with  these 
standards.  In  this  way  he  grades  himself  and  determines  his  own  wage 
rate  by  his  performance. 

It  has  been  reported  to  us  that  in  a  city  not  covered  by  this  report 
painstaking  time  study  with  satisfactory  standardization  of  process  is  now 
being  practiced  with  the  full  co-operation  of  the  Amalgamated  Clothing 
Workers  of  America.  We  are  satisfied  that  other  conditions  being  right, 
the  individual  and  collective  interests  of  both  employer  and  employee 
demand  the  scientific  analysis  of  process. 

By  constantly  checking  actual  performance  against  the  standards 
and  by  promptly  investigating  the  causes  of  failures  to  attain  standards, 
the  manufacturer  can  quickly  detect  unstandardized  conditions  as  they 
creep  in,  and  rectify  them.  Performance  standards  enable  the  work 
waiting  at  each  operation  to  be  expressed  as  hours  of  work  ahead,  obvi- 


THE  MEN'S  READY-MADE  CLOTHING  INDUSTRY  111 

ously  a  valuable  aid  in  planning  the  distribution  of  workers  so  as  to  prevent 
both  congestion  and  failure  of  work  supply.  All  sales  orders  can  be 
expressed  in  terms  of  hours  of  work,  on  the  basis  of  which  a  balance-of- 
work-ahead  record  can  be  maintained,  delivery  promises  can  be  kept,  the 
sales  management  can  be  guided  in  soliciting  more  business  or  refusing 
orders,  in  pushing  this  class  of  model  and  neglecting  that.  Production 
can  be  planned  for  an  entire  season.  In  the  realm  of  expansion,  the  manu- 
facturer can  plan  the  size  of  his  plant  and  operating  force  to  take  care  of 
a  given  volume  of  business  by  a  continuous  operation.  These  methods 
together  with  a  scientific  make-for-stock  policy,  based  on  an  intelligent 
use  of  business  statistics,  make  it  possible  to  eliminate  the  seasonal  wave 
feature  of  manufacturing  clothing. 

(6)  Production  Records  and  Versatile  Workers. — Without  a  record  of 
production  congestion  of  work  is  bound  to  occur  at  some  points  and 
running  out  of  work  is  bound  to  occur  at  other  points;  both  do  occur  before 
the  shop  executives  can  become  aware  of  their  imminence.  With  such 
records  the  trend  of  affairs  at  each  point  can  be  known  hours,  even  days, 
ahead  and  adequate  measures  taken  to  maintain  the  even  flow  of  work. 
These  measures  consist,  for  the  most  part,  of  planned  transfers  of  workers. 
Transfer  of  workers  so  as  to  redistribute  them  among  operations  is  neces- 
sary if  congestion  and  idleness  are  to  be  avoided.  Only  in  a  factory  large 
enough  to  supply  the  whole  world  and  with  a  perfect  attendance  could  the 
work  forces  in  the  various  operations  be  so  proportioned  as  to  dispense 
with  transfers.  Hence  the  necessity  for  a  versatile  and  mobile  force  of 
operatives — each  of  whom  is  skilled  in  two  or  more  operations. 

Two  manufacturers  in  particular  have  done  very  well  in  these  respects. 
One  operates  under  scientific  management,  the  other  is  making  an  effort 
to  install  it.  Both  have  divided  their  shops  into  sections,  each  served 
by  an  order-of-work  station;  both  have  work  tickets  to  record  individual 
production ;  both  have  a  route  card  for  each  manufacturing  lot,  on  which 
the  one  keeps  an  up-to-the-minute,  the  other  an  up-to-the-hour  record  of 
the  progress  made  upon  the  lot;  the  one  has  an  up-to-the-minute,  the 
other  an  up-to-the-hour  record  of  the  production  in  each  operation  and 
of  the  balance  of  work  ahead  of  it.  The  one,  through  a  policy  of  grading 
and  rating  the  various  operations  according  to  the  skill  involved  and  of 
developing  the  all-around  skill  of  its  workers,  has  developed  a  very  versa- 
tile and  mobile  work  force  and,  redistributing  them  each  day  so  as  to 
"  balance  the  shop,"  congestion  at  any  point  is  avoided  by  setting  a 
production  quota  for  the  day  that  will  occupy  the  "  weakest  link  "  the 
full  work  day  and  by  stopping  production  in  each  operation  as  soon  as 
the  quota  is  reached.  The  other  maintains  a  separate  "  flying  squadron  " 
of  versatile  workers  and  plans  the  transfer  each  day  on  the  basis  of  the 
balance  of  work  ahead  and  production  record. 


112  WASTE  IN  INDUSTRY 

All  of  this  implies  centralized  planning  to  originate  and  plan  for 
manufacturing  orders,  prepare  the  administrative  stationery,  collect 
and  interpret  reports,  arrange  for  transfers  and  the  like.  Once  consci- 
ousness of  these  needs  is  awakened,  it  will  demand  a  survey  of  the  work 
of  the  whole  season  and  of  future  seasons.  Manufacturing  planning,  sales 
planning,  financial  planning,  both  for  the  immediate  and  more  remote 
future  will  become  interlinked. 

(c)  A  Cost  System. — Relatively  few  American  industries  have  devel- 
oped a  generally  accepted  and  applied  system  for  finding  costs.  The 
reason  in  the  case  of  the  men's  ready-made  clothing  industry  lies  largely 
in  the  fact  that  a  considerable  part  of  the  total  cost  of  the  product  is 
included  in  two  items  (1)  the  cloth  and  (2)  the  direct  labor  required  to 
fabricate  the  cloth;  and  also  in  the  fact  that  a  large  part  of  this  direct 
labor  item  could  formerly  be  figured  out  in  advance  pretty  accurately 
through  the  schedule  of  piece-rates.  But  in  the  development  of  large  scale 
production,  with  its  staff  of  so-called  "  non-productive  "  assistants  to  the 
operators  and  heavy  overhead  expenses,  for  some  of  which  the  shop  is  in 
no  way  responsible,  cost-keeping  has  become  more  and  more  necessary. 
Any  really  modern  cost  system  is  operated  to  gage  the  effectiveness  of 
manufacturing  and  merchandising  methods  and  as  an  aid  to  the  develop- 
ment of  better  methods.  A  cost  system,  for  instance,  like  the  one  widely 
used  in  the  printing  industry,  which  simply  tells  the  manufacturer  whether 
his  selling  price  is  in  excess  of  his  "  cost,"  acts  as  a  deterrent  to  efficient 
manufacturing.  "  The  Cost  factor  is  the  best  measure  of  performance 
known."  l 

In  fact,  there  is  frequently  no  available  measure  of  the  efficiency  of 
methods  other  than  costs.  An  accurate  cost-keeping  system  is  especially 
valuable  to  establishments  operating  more  than  one  plant,  in  that  it  makes 
analytical  comparison  of  results  possible.  A  cost-keeping  system  per- 
mitting the  elimination  of  guesses  and  approximations  will  be  a  strong 
incentive  in  securing  the  interest  of  the  workers  in  production.  The 
moment  cost-keeping  is  adopted,  many  present  practices  will  be  discarded. 
In  more  than  one  New  York  shop  the  payroll  is  regularly  made  up  on 
wrapping  paper  and  consigned  to  the  waste  basket  after  pay  day.  In  one 
of  the  most  representative  plants  the  entire  estimated  cost  of  the  suit  is 
added  to  the  inventory  the  moment  it  is  put  in  process.  In  another  large 
shop,  the  opposite  practice  is  followed  and  the  $200,000  tied  up  in  work 
in  process  does  not  appear  in  the  inventory. 

The  Sub-Contracting  System. — A  noteworthy  feature  of  the  industry 
is  the  progress  away  from  the  sub-contracting  system  in  tailoring.  While 
a  considerable  portion  of  tailoring  is  still  contracted  out  in  all  the  large 

1 "  True  Cost  Finding,  etc." — Annals  of  the  American  Academy  of  Political  and 
Social  Science,  Philadelphia,  November,  1919. 


THE  MEN'S  READY-MADE  CLOTHING  INDUSTRY  113 

markets,  New  York,  with  nearly  2,000  contracting  shops  and  less  than 
100  so-called  "  inside  shops  "  remains  the  one  market  which  conducts  its 
tailoring  pre-eminently  on  the  sub-contract  basis.  The  development 
elsewhere  has  been  toward  the  establishment  of  large  and  stable  manu- 
facturing institutions  which  do  their  own  fabrication — called  tailoring — 
in  large  part.  An  occasional  manufacturer  may  even  be  found  who 
prides  himself  on  doing  all  of  his  own  manufacturing. 

This  movement  must  go  on  to  its  logical  conclusion.  Only  when  all 
the  manufacturing  facilities  he  uses  are  under  his  own  control  can  the  manu- 
facturer secure  that  effective  planning  and  administration  which  is  neces- 
sary to  the  most  economical  production.  In  New  York  a  movement 
has  been  retarded,  partly  because  many  manufacturers  do  not  want  the 
responsibility  of  maintaining  employment  for  the  workers,  partly  because 
of  the  attitude  of  the  workers  production  in  "  inside  shops  "  is  more 
expensive  than  under  the  sub-contracting  system.  Not  only  do  the  work- 
ers prohibit  performance  standards,  work  tickets  and  all  the  mechanism 
that  is  necessary  to  effective  shop  planning  and  administration,  but  it 
is  claimed  that  they  do  not  work  so  well  for  the  manufacturer,  who  to 
them  is  a  fabulously  wealthy  non-producer  whom  they  rarely  see,  as 
they  do  for  the  contractor  who  frequently  works  alongside  of  them  and 
whose  ability  to  pay  them  their  high  week-work  wages  obviously  depends 
upon  their  enabling  him  to  to  deliver  great  quantities  of  finished  gar- 
ments to  the  manufacturer.  The  drift  in  every  industry  proves  that 
manufacturing  on  a  contractual  basis  must  give  way  in  the  long  run 
before  the  obvious  economies  and  betterments  of  a  self-contained  plant 
executing  its  own  plans. 

H.  WASTE  ATTRIBUTABLE  TO  LABOR 

Industrial  discord  is  an  important  source  of  waste  in  the  men's  ready- 
made  clothing  industry,  but  even  as  regards  this  source  the  fact  should  be 
borne  in  mind  that  all  such  waste  cannot  rightly  be  charged  to  labor. 

We  have  spoken  of  the  fund  of  industrial  ill-will  of  the  workers  toward 
their  employers  which  has  grown  chiefly  out  of  the  large  amount  of  recur- 
ring seasonal  unemployment.  The  workers  also  have  vivid  memories 
of  the  mere  wage  pittances  they  received  in  their  former  years  of  sweat- 
shop exploitation.  The  result  in  recent  years  has  been  a  rapid  unioni- 
zation of  the  industry,  which  not  only  has  brought  wage  rates  up  to 
proper  relationship  with  wage  rates  in  other  industries  and  beyond  and 
established  the  forty-four  hour  week,  but  has  done  much  to  improve 
sanitation  in  the  factories. 

Strikes  and  Stoppages. — Industrial  discord  is  still,  however,  an  impor- 
tant source  of  waste.  A  large  part  of  the  New  York  market  was  idle  during 


114  WASTE  IN  INDUSTRY 

the  fourteen  weeks'  strike  immediately  following  the  Armistice.  Unioniza- 
tion strikes  kept  another  group  from  work  for  several  weeks  in  the  Summer 
of  1919,  likewise  a  group  of  Chicago  plants.  As  we  write  a  large  part  of 
the  New  York  market  is  again  idle  on  account  of  what  is  called  by  one 
party  a  strike,  by  the  other  a  lock-out,  which  commenced  in  December, 
1920,  through  the  failure  of  collective  negotiations  to  effect  a  new  agree- 
ment. Since  the  unionization  of  the  industry,  however,  strikes  have  been 
relatively  infrequent.  The  collective  bargaining  agreements  forbid  strikes, 
lock-outs  and  stoppages  and  provide  impartial  machinery  and  procedure 
for  adjusting  disputes.  The  higher  union  leaders  act  in  accordance 
with  these  arrangements  and  do  not  sanction  strikes  and  stop- 


In  most  markets,  however,  these  arrangements  are  still  so  new  that 
neither  the  employers  nor  the  employees  appreciate  their  responsibility 
under  them.  In  wage  settlements  the  worker  so  concentrates  his  atten- 
tion on  the  question  of  whether  he  is  to  get  the  desired  wage  increase 
that,  after  the  decision  is  rendered,  he  overlooks  his  part  of  the  bargain — 
the  conditions  subject  to  which  the  increase  is  granted.  In  New  York 
a  seasonal  wage  settlement  was  effected  in  April,  1919,  to  last  until  October 
1st.  New  demands  were  presented  and  a  new  settlement  effected  in  June, 
to  last  until  December  1st,  again  in  August  and  in  October.  The  employ- 
ers, however,  were  not  without  responsibility  for  this.  Under  the  pres- 
sure of  an  unprecedented  demand  for  clothing,  their  keen  competition  for 
labor,  especially  to  man  their  new  shops,  advanced  hiring  rates  higher  and 
higher,  causing  rapid  migration  and  inequality  of  rates  in  old  shops  in 
which  vacancies  were  filled  at  the  higher  rates  without  like  adjustments 
for  the  workers  already  there.  Then  followed  discontent,  individual  and 
shop  demands  for  further  increases,  many  stoppages  of  whole  sections 
of  workers,  and  some  unauthorized  strikes,  culminating  in  the  new 
market  demands. 

In  Chicago,  where  collective  bargaining  started  in  the  factories  of 
Hart,  Schaffner  &  Marx  in  1911,  the  leaders  are  more  experienced  and  the 
workers  better  educated  concerning  their  responsibilities  under  agree- 
ments. Nevertheless,  stoppages  are  not  infrequent.  Furthermore, 
although  general  wage  adjustments  are  not  demanded  except  in  the 
seasonal  settlements,  there  is  a  continuous  process  of  raising  wage  rates 
by  "  nibbling  "  at  individual  piece-rates  in  individual  factories.  Appar- 
ently the  same  process  is  going  on  in  other  markets.  This  is  by  no  means 
the  whole  story.  It  is  refreshing,  for  instance,  to  watch  a  union  deputy 
take  twenty-seven  cutters  to  task  very  earnestly  and  in  an  effective 
manner  for  not  keeping  their  production  up  to  the  standards  agreed  upon. 
And  it  is  interesting  to  note  that  recently  the  Chicago  clothing  workers 
Accepted  a  10%  reduction  in  wage  rates  by  collective  bargaining.  In 


THE  MEN'S  READY-MADE  CLOTHING  INDUSTRY  115 

time  all  parties  will  come  to  a  better  appreciation  of  their  obligations  to 
one  another  under  these  agreements. 

III.  WASTE  ATTRIBUTABLE  TO  OUTSIDE  CONTACTS 

Seasonal  Bunching  of  Demand. — Waste  in  the  manufacturing  process 
cannot  be  entirely  eliminated  through  steps  taken  within  the  plant. 
External  relations  both  with  the  manufacturers  of  cloth  and  other  materials 
and  with  the  retailers  and  other  agencies  through  which  the  manufactured 
garments  are  marketed  have  a  vital  bearing  on  the  effectiveness  of  manu- 
facturing procedures.  It  has  been  demonstrated  that  a  great  deal  of 
co-operation  is  needed  between  manufacturer  and  retailer  in  order  to 
reduce  the  seasonal  bunching  of  demand. 

Cancellations. — Besides,  more  dependable  business  relations  must 
replace  those  now  prevailing.  At  present  a  sale  is  not  a  sale.  Cancella- 
tions of  sales  orders  are  commonplace  every  day  occurrences.  Indeed, 
it  is  not  uncommon  for  a  purchaser  who  buys  on  long  time  credit,  to 
return  his  unsold  goods  at  the  end  of  the  season,  obtain  credit  and  get  it. 
One  manufacturer  reports  that  during  the  heavy-weight  season  of  1920 
his  cancellations  amounted  to  32%  of  his  sales  and  the  returned  mer- 
chandise to  16|%.  Another  reports  cancellations  of  33%  and  returns 
of  18%.  This  was  a  very  exceptional  season,  due  to  the  price  cutting 
campaign  inaugurated  by  the  U.  S.  Government  and  on-coming  industrial 
depression.  But  in  earlier  seasons  cancellations  ranged  from  3  to  14% 
and  returns  from  5  to  11%. 

Not  all  the  blame  rests  on  the  dealers.  It  is  a  common  practice  for 
manufacturers  not  only  to  over-sell  the  dealers  but  to  over-sell  their 
manufacturing  capacity,  make  and  deliver  what  they  can  and  cancel  the 
remainder  of  their  orders.  Sauce  for  the  goose  is  sauce  for  the  gander. 
The  manufacturers  also  do  the  same  thing  to  textile  mills. 

Certain  large  department  stores  and  other  stores  engage  in  an  especially 
reprehensible  practice.  One  of  them  placed  orders  for  about  $300,000 
worth  of  suits  with  a  certain  manufacturer,  accepted  deliveries  of  one- 
fourth  to  one-third  of  that  amount  and  then,  when  the  remainder  of  the 
order  was  either  on  the  manufacturer's  shelves  or  in  process,  cancelled 
it.  Then  the  buyer  came  in  and  offered  to  buy  these  suits  at  25%  dis- 
count, which  the  manufacturer  felt  forced  to  accept.  On  this  basis  this 
buyer  conducted  one  of  the  "  cut-price  "  sales.  He  continued  this  prac- 
tice for  three  or  four  seasons,  until  the  manufacturer  refused  to  accept 
any  more  orders  subject  to  cancellation. 

Obviously  economical  manufacturing  cannot  be  conducted  on  any 
such  basis.  Certain  manufacturers  now  refuse  to  permit  cancellations. 
Eradication  of  the  practice  can  be  hastened  if  the  manufacturers  will  get 


116  WASTE  IN  INDUSTRY 

together  on  basic  sales  policies  and  have  the  mutual  confidence  and  back- 
bone to  carry  them  out. 

Relations  with  the  Mills. — The  tendency  to  trade  and  to  even  to  gam- 
ble in  cloth  is  everywhere  apparent.  The  whole  process  of  purchase 
and  delivery  is  on  a  basis  which  many  other  industries  abandoned  long 
ago.  Collective  buying  is  successfully  practiced  in  some  sections  of  the 
ready-made  clothing  industry.  Perhaps  it  is  feasible  for  the  men's 
ready-made  group  at  this  time.  At  all  events,  it  is  certain  that  the 
relations  of  this  group  with  the  mills  which  furnish  their  cloth  leave  much 
to  be  desired. 

Need  for  a  Trade  Association. — All  this  suggests  one  of  the  outstanding 
weaknesses  of  the  industry,  i.e.,  the  absence  of  any  comprehensive  trade 
organization  through  which  common  problems  can  be  studied  and  com- 
mon remedies  applied.  The  organizations  supported  by  the  industry 
as  a  whole  have  to  do  principally  with  marketing  the  product.  And  the 
means  employed  are  largely  to  afford  an  opportunity  for  the  display  of 
goods,  the  meeting  of  buyers  and  the  more  obvious  types  of  activity 
grouped  generally  under  the  head  of  merchandising.  The  International 
Association  of  Garment  Manufacturers  has  only  two  members  in  the  men's 
ready-made  trade  and  these  do  not  participate  to  any  extent  in  its  activi- 
ties. There  is  no  joint  agency  studying  the  obvious  weaknesses  in 
merchandising  and  manufacturing  technique.  With  a  product  so  nearly 
uniform  the  economic  advantage  of  collective  action  in  such  matters  as 
standardization,  cost-keeping  and  merchandising  research  is  altogether 
clear.  The  assertion  will  probably  not  be  challenged  that  there  is  not  a 
single  individual  throughout  the  entire  industry  who  is  solely  engaged  in 
research  and  thus  without  operating  duties.  There  are  other  industries 
which  pay  slight  attention  to  research,  but  none,  I  believe,  in  which  it  is 
so  nearly  ignored. 

The  national  Industrial  Federation  of  Clothing  Manufacturers  is 
loosely  organized,  but  nevertheless  has  proven  quite  effective  in  crises. 
Its  leadership  on  the  whole  has  been  liberal.  But  in  the  light  of  its 
opportunities  its  policies  have  been  far  from  aggressive.  As  a  matter  of 
fact,  the  failure  to  establish  any  clear  national  labor  policy  has  proven  a 
blessing,  for  in  every  one  of  the  markets  individual  experiments  of  no 
mean  importance  are  in  process  of  being  tried  out. 

There  is  a  feeling  in  the  clothing  trades  generally  that  organizations 
dealing  with  labor  policies  should  not  interest  themselves  in  other  matters. 
This  is  probably  one  reason  why  the  Industrial  Federation  of  Clothing 
Manufacturers  takes  so  little  interest  in  production  methods.  The 
practical  contributions  to  this  field  have  come  largely  on  the  initiative  of 
the  several  impartial  chairmen  and  a  few  labor  managers.  Without 
making  any  effort  to  locate  the  credit  for  it,  one  can  say  that  probably  no 


THE  MEN'S  READY-MADE  CLOTHING  INDUSTRY 


117 


other  industry  in  this  country  is  so  generally  aware  of  the  essential 
character  of  the  group  of  problems  included  under  the  general  heading 
of  industrial  relations.  There  is  every  reason  to  believe  that  as  the  good 
order  of  the  industry  is  improved  the  labor  managers  and  the  repre- 
sentatives of  the  workers  may  find  some  way  of  arousing  the  interest  of 
the  workers  in  the  technology  of  the  industry.  Peace  and  good  order  are 
ends  to  be  sought,  but  to  use  a  phrase  current  in  one  shop,  they  do  not 
"  get  out  the  pants." 

Among  the  efforts  now  being  made  to  put  the  industry  on  a  more 
effective  basis,  those  directed  toward  the  establishment  of  good  will 
transcend  all  others  in  importance.  But  the  obvious  drift  within  the 
labor  movement,  the  necessities  of  the  times  and  the  individual  and 
collective  interests  of  the  employers  suggest  that  everywhere  the  effort 
should  be  made  to  bring  men  and  management  together  for  the  closest 
possible  co-operative  study  of  the  technology  and  science  of  the  industry. 
And,  lastly,  some  means  must  be  found  for  bringing  the  employers  together 
in  an  organization — existing  or  to  be  created — the  object  of  which  should 
be  to  carry  on  the  production  and  merchandising  researches  and  activities 
which  require  collective  action. 


THE  FIELD  REPORT  EVALUATION  SHEETS 

Through  the  use  of  the  questionnaire,  cause  and  resulting  effect 
have  been  isolated  in  a  way  we  would  not  have  deemed  possible  at  this 
stage  of  the  development  of  the  science  of  management.  The  answers 
on  the  questionnaire  have  been  used  on  the  rating  sheet  giving  the  nine 
plants  analyzed  the  following  "  relative  or  comparative  "  standing  in  this 
matter  of  wastefulness — the  best  record  being  at  the  bottom: 


Plant  No  1 

83  6  Points 

Plant  No  6 

68  0  Points 

9 

79  8        " 

7     . 

53  9      " 

3 

75  7        " 

8  

53  2      " 

4 

68  6        " 

9  

26  5      " 

5  

68  3        " 

Average  

64  2      " 

This  means  that  the  best  plant  has  an  advantage  of  57  points  in  a  hun- 
dred over  the  worst,  and  that  it  is  42  points  ahead  of  the  average  of  the 
other  plants  investigated.  It  will  be  surprising  if  any  other  industry 
affords  an  equally  striking  example  of  a  single  plant  of  high  and  known 
excellence  so  far  ahead  of  its  competitors  in  most  of  the  things  which 
taken  together  constitute  good  management. 

One  conclusion  apparent  from  these  rating  sheets  is  the  preponderant 
share  of  the  responsibility  for  waste  which  is  chargeable  to  management. 


118  WASTE  IN  INDUSTRY 

While  labor  naturally  participates  in  many  ways  in  lowering  the  general 
effectiveness,  still  its  total  contribution  is  but  a  fraction  of  that  of  man- 
agement. On  the  other  hand,  the  responsibility  of  the  public  appears  to 
be  negligible.  In  the  nine  plants  investigated  these  responsibilities  for 
waste  averaged  as  follows:  management,  75%;  labor,  16%;  and  the 
public,  9%. 

Owing  to  the  scarcity  of  dependable  data  about  the  value  of  the  total 
annual  product  of  the  industry  and  the  complete  absence  of  statistics  of 
quantity  production,  it  is  difficult  even  to  approximate  preventable 
waste  in  dollars  and  cents.  But  it  seems  clear  that  a  40%  pick-up  in 
effectiveness  is  easily  in  sight.  This  saving  can  be  brought  about  with- 
out revolutionary  changes  simply  through  the  fairly  general  adoption  of 
methods  in  current  use.  Fixing  the  present  value  of  the  output  of  the 
industry  at  say  $600,000,000—  about  half  of  the  figure  given  in  the  last 
census — savings  easily  possible  would  aggregate  more  than  three-quarters 
of  a  million  dollars  a  day. 

We  are  fairly  well  satisfied  that  our  evaluation  sets  forth  the  compara- 
tive wastefulness  of  the  nine  plants  with  substantial  accuracy.  However, 
it  is  evident  that  a  considerable  element  of  judgment  enters  into  our 
relative  evaluations  of  the  forty-seven  items  and  that  until  these  judg- 
ments can  be  tested  and  rectified  in  the  light  of  later  experience,  too  much 
reliance  should  not  be  put  upon  the  absolute  accuracy  of  the  several 
evaluations. 

We  feel  that  the  chief  value  of  this  field  report  evaluation  sheet  is 
to  be  found  not  in  the  results  of  this  investigation,  but  in  that  it  con- 
stitutes an  important  beginning  out  of  which  will  be  perfected  a  very 
powerful  and  very  valuable  instrument  for  investigation.  Later  experi- 
ence will  of  course  suggest  other  causes  of  waste  than  those  we  have 
enumerated.  It  will  also  give  us  more  accurate  measurements  of  the  waste- 
producing  powers  of  the  various  causes  than  is  possible  now. 

NOTE. — We  consider  that  items  K  15,  K  16,  and  U  7,  which  deal  on  the  one  hand 
with  provision  whereby  the  organized  mind  of  the  management  is  evaluated  and  on 
the  other  with  cost  accounting,  are  relatively  undervalued,  but  have  yielded  to  the 
opinions  of  other  authorities  for  the  purpose  of  this  investigation. 


THE  MEN'S  READY-MADE  CLOTHING  INDUSTRY 


119 


TYPICAL  EVALUATION  SHEETwiTH  KEY  AND  SUMMARY 

AMERICAN    ENGINEER  NO    COUNCIL 
OF 
THE    FEDERATED     AMERICAN     ENGINEERING    SOCIETIES 

INDUSTRY                              PLANT  NO.                             EST.BY                                               DATE 

>-   ©  +  ®+®-®  Excellent  =0%  Waste      Poor  =  60°Uaste                  a  +b+c  =d  =  iOO°fo 
S    ®  +  ®+®-®Fa°°r          :4°0°°°»           Bad  =  oO°|o     „                       e  +f  +  g=h  -  «|o  Waste 

(O 

UJ 

O 

paraphrased  and  condensed  from  the  FIELD 
QUESTIONNAIRE  soasfoafford  oquick  survey  of  the 
character  of  the  investigation  and  const!  tuteakey  to  ttw  symbols 

MANAGEMENT 

LABOR 

OUTSIOECOKTHACTS 

ssigned 

Points 
Waste 

«SS9Wd 
Points 

Points 
Waste 

Assigned 
Points 

Points 
Waste 

tesigned 
Points 

V/aste 

| 

K  |     Have  you  an  ORGANIZATION  CHART  or  its  equivalent  ? 

0.50 

0.43 

0.50 

0.*3 

K2       ]L$*.:    ,                                      -;ALI2.EDOriS  It  built 

?.48 

IT, 

an 

0.15 

0.39 

0.22 

3.1* 

2.1* 

KJ      fct^.^y^r:;:?^:--''^  n^our 

0.90 

0.10 

0.90 

10 

K4      eKl^fSrSS'J  "*TWCT,ofcft,reacn 

LOT 

0.81 

o.t> 

o.n 

1.30 

04 

KS     %Wti™?!:                         ;•%&«« 

no 

H.05 

MO 

05 

||i 
J|| 

zii 

•g-j^fflSS3?/™^ 

4.80 

7.89 

1.80 

0.89 

6.60 

18 

KIO     SSiSfe-'                                                 "Gret?ft0neS' 

0.90 

0.49 

0.90 

0.49 

KM       Do.*1-'                                      -  'I  QUITS? 

a  18 

OH 

Ki2    ooi|ou".--                                        .CAUSES! 

O.ll 

o.n 

C.W 

KI3     Union  scole.competitive  market,  rtT,dajjwork,pi>ce 
work  or  other  forms  of  incentive  waqe! 

191 

i.tj 

1.49 

0.92 

4.40 

2.65 

KI4      hSSTe-                                ;;y  day  and  week  and 

0.11 

O.IZ 

O.I3 

0.05 

0.90 

0.11 

X'S'5'  l^^M°,021!lbCpl?SEDU>"ON'PREFERENTIAlUN'OI<OR)  1    <W1 

0.36 

O.Z3 

0.11 

0.90 

0.47 

KlS^Whatform  of  SHOP  REPRESENTATION  have  you  ? 

ORGA 

MethocU  of  Industry  astoT 
and  Discharge  of  Responsib 

U17     Dunnq.tie  lei1-*  Suear:  ,-i^at  has  been  yourSTRlhE  RECORD 
K»    astoTi-:.  •       .-.;.-            •    -*i.etc? 

o.n 

0.14 

o.n 

0.07 

0.40 

0-tl 

Dunng  the  last  Sueors  what  has  been  your  STOPPAGE  RECORD 

KIR    astofe  •.                                                       O'fcppaqesare 

Kl3  *..•                          ,M$r* 

0.06 

om 

0.3* 

015 

0.40 

o.n 

K»     nMr"--                                    -  WTEDBYA  COMPETENT 

1.01 

0.64 

0.09 

0.05 

1.10 

0.69 

0.39 

0.03 

0.01 

0.00 

0.<W 

0.05 

"i     ''jlSZ?plE?MfufTlr'WOrkerS'nMETHODSA'iOOWUTY 

3.ZZ    1 

1.99 

•m 

1.10 

4.49 

ml  aS^^^^K'^ss^r116 

?.ZO 

1.51 

0.50 

O.JO 

7.10 

1.87 

TOTAL  OR&ANIIATION  CAUSES 

?1.38 

n.n 

1.81 

4.59 

0.19 

D.i'i 

a  35  .64 

e|22.S8 

TECHNICAL 

Ml.  Available  Engineering  Knowledge 
astoProduct/lanfatid  Materials 

TI  H^SfflSSHSSSB  ' 

056 

0.30 

0.18 

1.30 

0.14 

TI        J'-. 

Utl 

o.to 

0.11 

J.ZO 

1.52 

T3      ^4""'-"v--                                     '-jJSSips?™9!  0-M 

a  is 

0.30 

0.18 

?  9J 

4.40 

2.90 

Tc      Isyou'  •:  <    ^     '      ••     ,          •   .      .:  REPAIR 

'=        INSPECTION  T!ac.eb                                             ^ART»ENT' 

356 

I.9S 

0.4« 

0.11 

4.00 

2.14 

10        operations? 

0.81 

0.51 

0.09 

0.04 

0.90 

0.55 

6.00 

3.93 

J.tO 

1.31 

8.ZO 

5.30 

jg      Iseach  PROCESS  STANDARDIIED  as  to  work  content 

4.10 

2.  to 

190 

htl 

1.10 

0.11 

1.10 

4.68 

TOTAL  TECHNICAL   CAUSES 

tt.'H 

I3.9Z 

?.6J 

1.63 

3-60 

?.?6 

b  ;A-: 

t'|  Ml 

SSP! 

O.TO 

tt41 

0.10 

0.41 

U2       l^rl«KUf«CTDRI^I^lTOK"AMD-sRlor 

6.00 

4.61 

7.10 

1.81 

8.20 

648 

UTILIZATION 

Effectiveness  of  Technical  Knowledge  and  Organilati 
Direction,  Control  and  Accounting  Factors 

UJ     Knyooi^^SKllMflSlEHACMlME-TiMEtijamount, 

030 

o.:i 

010 

0.08 

0.40 

0.35 

u4   1asS^S?^FeSSS^l3SS!S^l'>utMamon9 

350 

?.4I 

0.50 

0.30 

4.00 

7.11 

U5     w-;  &tH(M|  MMMMMfeHAll  •' 

1.50 

0.95 

O.TO 

Q5I 

2.20 

.47 

U6  ESras^^Effi^ 

1.07 

0.64 

0.13 

0.48 

1.80 

•'2. 

UT       HweijOuagoodCllRRtHTCOSTSrSTEMTlEDIHOTHTHEnMMaALBOOKS' 

1.51 

1.13 

0-63 

0.48 

?.20 

1.61 

U8     Ooipu:--'                      -    -  :R-TltiE*iaT»)unt.a)5t9caees? 

O.^J 

0.24 

0.01 

0.01 

0.40 

0.31 

-  -•     :•!••  ,-•..,-.. 

0.11 

Off! 

0.19 

0.13 

0.30 

0.20 

-^WTOSPEClFICATIONSond 

1.00 

0.59 

0.50 

0.32 

1.50 

0.91 

UR     V«»atC(Iimo^BSTSOVEItRECrPT,INSURANCEANDRfTURH 

35b 

1.90 

0.44 

0.20 

4.00 

2.10 

aso 

0.16 

0.90 

0.36 

U14    WHATTYPESOFIHTERNALTRANSPORTATIONareused  ? 

1.58 

0-63 

0.12 

O.M 

2.20 

0.87 

O.TO 

O.Z8 

0.10 

O.Z8 

^S?,^!!^CTION 

1.00 

0.64 

0.50 

O.IS 

1.50 

0.92 

yij     «^jj«U"y»gyj!jl^lll*lrtFUNCTION«UIED  INSPECTION 

o.to 

0.09 

O.tO 

0.09 

U8     '?/  -    .                               -erofmsPECT.oH 

041 

0-19 

0.40 

0.19 

uts    detailedstuduandtheworkers'co-operati'on  ? 

I.TZ 

i  10 

Z.IS 

.1.51 

O.J4 

0.34 

431 

2.95 

TOTAL  UTILI7ATION  CAUSES 

2(,  'A 

16.64 

6.13 

4.J8 

3.C4 

?.41 

CJ35.91 

9  23.39 

TOTAL  ALL  CAUSES 

15.69 

48.JS 

n.Z3 

10.50 

1.03 

4.95 

d[ioo 

h  .'''  '•• 

120 


WASTE  IN  INDUSTRY 


F    ELD    REPORT  EVALUATION 

AMERICAN    ENGINEERING     COUNCIL 
OF 
THE    FEDERATED     AMERICAN      ENGINEERING    SOCIETIES 

INDUSTRY  "^j^'7*7'*     PLANT  W.N.P.S.                    EST.  BY  7:  IV.  «                                      DATE  Unfa 

>    ©+®  +  ®=®  Excellent  =  O^oWaste       Poor  =  60°/oV/aste                   a+b+c-d-  I00°/o 
*  ®  +  ®  +  ®-®'a-°d       :3&  :         Bad  =80°|0    "                     «  +  f  +  9-h-  o/oWasfe 

in 

UJ 

3 
U 

Guide 

Questions 

R 

:  S  P  O  N  S  1  B  1  LIT 

E  S 

T01ALWASTE 

for 

Est.°|o 
Waste 

Pointi 
Waste 

Attigiwd 
Points 

Est.ofo 
Waste 

Points 
Waste 

Points 

Est.°|o 
Waste 

Points 
Waste 

is 

Points 
Waste 

Investi- 

Points 

gator 

I 

10 

U 

12 

ORGAN  I7ATION 

Mechanism  of  Industry  as  to  Type,Methods(PaperWorl<)and  Personnel, 
Assignment  and  Discharge  of  Responsibility  and  Relationship 

y. 

0.5 

100 

0.5 

0.5 

05 

K2 

74 

100 

14 

0.3 

0.3 

0.4 

0.4 

3.1 

3.1 

K» 

0.9 

100 

0.9 

0.9 

0.9 

K4 

1.0 

100 

1.0 

0.3 

03 

.3 

1.3 

K5 

22 

100 

J.2 

2.2 

2.7 

U 

O.I 

50 

.05 

0.2 

50 

.10 

0.3 

0.15 

Kl 

5.0 

as 

400 

1.6 

80 

1.28 

5.28 

K9 

10 

0.9 

100 

050 

0.9 

0.9 

y 

100 

0.20 

O.I 

100 

.10 

0-3 

0.3 

1^ 

0.2 

100 

0.20 

O.I 

100 

.10 

01 

0.3 

CI3 

3.0 

80 

2AO 

1.4 

80 

1.12 

4.4 

3.52 

14 

O.T 

0.2 

0.9 

15 

0.4 

50 

0.20 

0.5 

50 

.25 

0.9 

.45 

16 

Q 

0.2 

100 

0.20 

0.2 

0.4 

•  20 

(18 

0.4 

100 

.40 

0.4- 

.40 

KI9 

1.0 

100 

1.00 

0.1 

100 

.10 

l.l 

1.10 

K20 

0.4 

0.4 

K2I 

0.1 

100 

.10 

0.2 

100 

.20 

0.9 

•  90 

Kl'h 

5.0 

80 

4.00 

2.1 

80 

1.68 

5.68 

Kill 

2.S 

80 

1,84 

0.4 

60 

.24 

2.1 

2,08 

TOTAL 

21.2 

22.14 

8.0 

6.12 

0.4. 

0.4 

a  )M 

6  29.26 

TECHNICAL 

ilableEngineering  Knowledge 
no  Product,  Plant  and  Materials 

11 

Q 

•  50 

0.3 

60 

.18 

.3 

.66 

T2 

o 

80 

1.60 

0.2 

>16 

Z2 

1.16 

f 

.3 

100 

•30 

03 

.30 

T 

.4 

15 

3.30 

4.4 

3.  JO 

T 

5 

50 

1.15 

0.5 

50 

0.25 

4.0 

2.00 

T 

0.8 

80 

•64 

O.I 

80 

.08 

0.9 

•12 

f 

6.0 

100 

6.00 

2.2 

100 

7.20 

8.2 

8.20 

T8 

3.6 

80 

2.88 

2.4 

80 

1.92 

1.1 

80 

.88 

7.1 

5.68 

1  s 

TOTAL 

T    & 

K51 

3.7 

7.41 

3.6 

3.26 

b:n- 

f|«* 

1  ON 

ledge  and  Organization. 
ng  Factors 

Ul 

0.1 

40 

.28 

0.1 

.28 

U2 

6.0 

100 

6.00 

2.2 

100 

7.20 

S.2 

8.20 

U3 

0.3 

100 

.30 

O.I 

100 

.10 

.40 

U4. 

3.5 

100 

3.50 

05 

100 

•  50 

4.0 

4.00 

U5 

I.I 

1.10 

I.I 

no 

2.2 

2.ZO 

U6 

03 

.90 

0.9 

•  90 

.8 

.80 

Ul 

I.I 

1.10 

U 

1.10 

2.2 

7.20 

U8 

0.2 

.20 

0-f 

.70 

0.4 

.40 

U9 

0.1 

0.2 

.20 

0.1 

UIO 

Ull 

1.0 

80 

.80 

0.5 

60 

.30 

.5 

.10 

ure 

3.5 

80 

288 

0.5 

80 

•40 

3.?e 

U  T  \  L  1  Z  AT 

Effectiveness  of  Technical  Know 
Direction,Control  and  Account! 

UI3 

0.9 

50 

.45 

a 

.45 

UI4 

15 

50 

.15 

0.1 

50 

.35 

.2 

.10 

UI5 

a- 

.28 

.28 

UI6 

1.0 

80 

.80 

0.5 

80 

.40 

1.5 

20 

un 

0.2 

.20 

0,2 

.20 

UB 

0.4 

OA 

UI9 

I.I 

100 

1.  10 

7.2 

100 

2  20 

1.0 

100 

1.00 

4-3 

4.30 

TOTAL 

24.2 

20.14 

8.0 

T  4S 

3.1 

3.5 

C  35.9 

9  31.69 

GRAND  TOTAL 

13.0 

60.45 

19.2 

15:98 

1.1 

1.16 

IMOO 

h  83.59 

THE  MEN'S  READY-MADE  CLOTHING  INDUSTRY 


121 


FIELD    REPORT  EVALUATION 

AMER  CAN     ENGINEERING     COUNCIL 
OF 
THE     FEDERATED     AMERICAN      ENGINEERING    SOCIETIES 

INDUSTRY  Menao'hma'de      PLANT  NO./ftS.O                    EST-BYTIUCW.                                     DATE-*/eA' 

>-    ©+®  +  ®  -©Excellent  =0°|o  Waste       peor  -  60°/oWaste                  a  tb  +C  -d  -I00°/0 
"   ®  *  ®  *  ®  -  ®  FaTr         :i°0°|o  ".          Bad  -  S00'0    "                      e  +f  +  g  -  h  -    -/a  Waste 

CAUSES 

Guide 
Queans 
for 
Feld 
Investi- 
gator 

R  I 

SPONSIBILIIIES 

TOTAL  WASTE 

M 

ANASEMEN 

Points 
Waste 

Bsigned 
Points 

Est.°/o 
Waste 

Points 
•Vfast* 

Po-mrf 

Est.°|o 
Waste 

Points 
Waste 

*s? 

Est.o/o 
Waste 

Points 

Points 

Z 

3 

4 

5 

6 

t 

8 

§ 

10 

II 

14 

15 

14. 

ON 

CPaperWork)and  Personnel, 
ty  and  Relationship 

K 

5 

100 

0.50 

0.5 

0.5 

K2 

.1 

100 

J'.IO 

3.1 

3.1 

KS 

9 

100 

0.90 

0.9 

0.9 

K4 

3 

100 

1.30 

1.3 

1.3 

KS 

2 

100 

2.20 

2.2 

2.2 

KS 

0.1 

100 

0.10 

0.2 

100 

0.2- 

0.3 

0.3 

KT 

5.0 

80 

4.00 

1-6 

80 

1.78 

6.6 

5.28 

K8 

K9 

0.9 

0.9 

Kll 

0.1 

100 

0.2 

I'D 

0.20 

0.3 

0.30 

OR6  A  N  IT  A  Tl 

Mechanism  of  Industry  as  to  Type,Methods 
Assignment  and  Discharge  of  Responsibil 

K2 

0.2 

100 

020 

O.I 

100 

0.10 

0.3 

0.30 

3.0 

80 

2.40 

1.4 

80 

1.12 

4.4 

352 

K14 

0.9 

09 

KI5 

0,45 

50 

o.;: 

0.45 

50 

0.23 

0.9 

0.45 

16 

17 

0.2 

100 

0.20 

0.20 

100 

0.20 

0.4 

0.40 

18 

0.4 

33 

0.13 

0.4 

0.13 

(19 

1.10 

100 

1.10 

1.1 

1.10 

20 

0.4 

0.4 

21 

0.*5 

100 

Q4q 

0.45 

100 

.45 

0.9 

•90 

5 

5.00 

80 

?.IO 

80 

1.68 

7.1 

5.68 

2.3 

80 

1.84 

0.40 

80 

.32 

27 

2.16 

TOTAL 

28.10 

E2.61 

7.50 

5.91 

OJ  35.6 

6J28.52 

ICAL 

ng  Knowledge 
tand  Materials 

Tl 

1.0 

0.5 

03 

67 

0.2 

1.3 

0.70 

T? 

2.0 

80 

1.60 

0.20 

80 

.16 

22 

1.76 

T3 

0.3 

100 

.30 

0.3 

.30 

T4 

4.4 

80 

3.52 

4.4 

352 

T5 

4.0 

100 

4.00 

4.0 

4.00 

TS 

0.9 

100 

.90 

0.9 

•90 

T7 

6.0 

40 

2.40 

2J 

40 

0.88 

8.2 

3.28 

TECHN 

Available  Engineer 
as  to  Production 

T8 

3.6 

80 

2.88 

7.40 

80 

1.92 

U 

80 

0.88 

7.1 

5.68 

TOTAL 

zw 

16.10 

?.& 

2.08 

3.6 

1.96 

bJ28.4 

f|20,4 

ON 

edge  and  Organ'nation. 
g  Factors 

U  1 

0.7 

100 

0.70 

0.7 

0.70 

t  2 

6.0 

100 

6.00 

2.2 

100 

2.20 

8.2 

8.20 

U3 

OJ 

100 

•30 

.10 

100 

.10 

04 

.40 

U4 

3.5 

100 

3.50 

.50 

100 

•  50 

4.0 

4.00 

U5 

100  , 

1.10 

1.10. 

100 

1.10 

2.2 

2.20 

1)6 

.9 

100 

.90 

.90 

100 

.90 

1.8 

1.80 

U7 

1 

100 

MO 

1.10 

too 

1.10 

2.2 

2.20 

U8 

Z 

100 

.20 

.20 

100 

.20 

.40 

U9 

.1 

100 

.10 

.20 

100 

20 

0.3 

.30 

U  1 

o 

100 

1.00 

0.5 

100 

.50 

15 

.50 

UT  1  LI  Z  ATI 

Effectiveness  of  Technical  Knowl 
Direction,  Control  and  Accountin 

"ul  

.9 

50 

—jj- 

UI4 

2 

20 

•40 

2.2 

-.40 

J  5 

.7 

50 

•35 

0.7 

.35 

UI6 

0 

1.00 

.50 

100 

.50 

1.5 

1.50 

U  7 

,2 

50 

•10 

0.2 

.10 

UI8 

^ 

100 

.40 

0.4 

•40 

I  19 

I.I 

100 

1.10 

?20 

100 

2.20 

1.0 

100 

1.00 

4-3 

4.30 

TOTAL 

25.4- 

20.65 

6.8 

6.8 

3.1 

3.1 

C  35.9 

9  31.15 

GRAND  TOTAL 

15.1 

59.36 

16.9 

14.79 

7.3 

5.66 

d  100 

rl  19.81 

122 


WASTE  IN  INDUSTRY 


FIELD    REPORT  EVALUATION 

COMMITTEE   ON     ELIMINATION    OF    WASTE  IN    INDUSTRY 
AMERICAN    ENGINEERING     COUNCIL 
OF 
THE    FEDERATED    AMERICAN     ENGINEERING    SOC  ETIES 

INDUSTRY  ^$w^**  PLANTNO.  A.l.K.                   EST.BY  T.W.M.                                    DATEW*' 

>-    ©  +  <D  +  (D  -  ©  Excellent  -0°lo  Waste       Poor  „  60°/o  Waste                   a  t  b  +  c  -  d  -  I00°lo 
*®  +  ®  +  ®-®?£         3&5         Bad  =800(o    «                       e+f+g.h-'/oWaste        . 

CAUSES 

Guide 
Questions 
for 
Field 
Investi- 
gator 

RESPONSIBILITIES 

TOTAL  WASTE 

ANAGEMENT 

OUTSIDE    CONTRACTS 

Points 
Waste 

A»gn«J 
Points 

Est.°|o 
Waste 

Mgcta 

Assigned 

Po'mts 

Est.°)o 
Waste 

Est.ofo 
Waste 

Points 
Waste 

Assigned 
Points 

Mnta 

Points 

| 

I 

* 

4 

5 

6 

'1 

* 

8 

10 

H 

B 

U 

'* 

ORGANIZATION 

Mechanism  of  Industry  as  to  Type,Methocb(  Paper  Work)  and  Personnel, 
Assignment  and  Discharge  of  Responsibility  and  Relationship 

Kl 

0.5 

50 

0.25 

0.5 

0.2S 

K2 

2.4 

15 

1.80 

0.3 

0.4 

do 

0.16 

3.1 

.94 

K3 

0.9 

100 

.90 

0.9 

JO 

K4 

1.0 

100 

LOO 

0-3 

100 

.30 

1.3 

1.30 

K5 

2.2 

100 

J.20 

2.2 

?.20 

K6 

0-1 

100 

•  10 

0.2 

ico 

•20 

0-3 

.30 

Kl 

5.0 

80 

4.00 

1.6 

80 

1.24 

(.6 

5.Z* 

KB 

K9 

KIO 

0.9 

10 

.09 

03 

.09 

Kll 

02 

WO 

.20 

O.I 

100 

.10 

0.1 

•  30 

IB 

0.2 

too 

.20 

0.1 

100 

.10 

0.} 

.30 

13 

3.0 

80 

2.40 

L4 

80 

U2 

-U 

L12 

14 

0.9 

0.9 

(15 

0-4 

so 

.20 

as 

50 

•25 

0.9 

.45 

(IS 

(n 

0? 

100 

.20 

0.2 

100 

•20 

a4 

.40 

IB 

04 

so 

•20 

04 

•20 

[19 

10 

100 

1.00 

ai 

100 

.10 

i.i 

l.iO 

KM 

0.4 

a* 

Kll 

0.45 

CU6 

100 

.45 

0.3 

.45 

KT/5 

5.0 

80 

4.00 

2  10 

80 

ue 

1.1 

5.W 

Kl% 

2.3 

80 

1.84 

.40 

80 

.S2 

83 

216 

TOTAL 

11.05 

20.58 

8.15 

S.JO 

0.* 

0.16 

H35.6 

e  -«>84 

TECHMICAL 

liable  Engineering  Knowledge 
o  Produc^Plantand  Materials 

Tl 

10 

•50 

60 

ai« 

1.3 

.48 

T2 

2.0 

80 

I.6C 

.20 

00 

Jfi 

2.2 

1.84 

T3 

« 

50 

.15 

0.3 

.IS 

'4 

4.4 

80 

352 

4.4 

1SZ 

TS 

5.5 

50 

1.15 

•  50 

50 

.IS 

4.0 

2.00 

T6 

0.8 

eo 

.64 

.01 

L80 

.08 

0.9 

-T2 

TT 

6.0 

60 

360 

2.2 

eo 

1.32 

8.2 

4.92 

T8 

2J 

80 

?88 

2.40 

80 

1.92 

I.I 

80 

•  88 

T.I 

5.68 

^S 

TOTAL 

21.6 

14.12 

3.Z 

2.41 

3.6 

2.38 

bJ28.4 

f|l9.SI 

2  ATIO  N 

Knowledge  and  Organ'aation. 

Ul 

ai 

80 

.56 

0.1 

.56 

U2 

6.0 

100 

600 

2.2 

100 

z.to 

8.2 

8.ZO 

y> 

03 

100 

.30 

.10 

100 

.10 

0.4 

.40 

U4 

33 

100 

3,50 

.so 

100 

.50 

4.00 

US      . 

U 

90 

•  99 

I.IO 

90 

.99 

Z.2 

1.98 

J6 

0.9 

90 

.81 

•  90 

90 

.81 

1.8 

1.62 

UT 

I.I 

100 

1.10 

1.10 

100 

1.10 

2.2 

220 

US 

0.2 

100 

•20 

.20 

100 

.10 

0.4 

.40 

us 

0.) 

IOO 

.20 

0.1 

.30 

uio 

1.0 

50 

.50 

0.5 

60 

•10 

1.5 

.80 

J2 

» 

to 

•10 

.50 

20 

10 

40 

.80 

yii 

04 

50 

•45 

0.9 

.45 

UI4 

1.5 

20 

.W 

.10 

20 

•1* 

27 

.44 

Ul« 

1.0 

90 

.90 

•  OS 

60 

•  JO 

1.5 

120 

un 

0.7 

UI8 

0.4 

0.4 

si 

TOTAL 

-.-,  : 

•.c5 

^  1 

--,-- 

3T 

C15.9 

g|n» 

GRAND  TOTAL 

-2.85 

52.18 

•.•• 

15.35 

in 

6.0* 

d  ioc 

h,,. 

THE  MEN'S  READY-MADE  CLOTHING  INDUSTRY 


123 


FIELD    REPORT  EVALUATION 

COMMITTEE  ON    ELIMINATION    OF  WASTE     N    INDUSTRY 
AMERGAN    ENG   NEERlNG    COUNCIL 
OF 

INDUSTRY  "%*$%$"*  PLANT  NO.  P-M.J.                   EST.BY^.AC.                                    DATE  4/Hfr 

>    0  +  ®  +  (D  =  ®  Excellent    0%Waste     Poor     60%  Waste                       ct+  b  +  C+d  =100% 
2    ®+®+@=®  Fair*          !00%,",        Bad      80%     „                           e  +  f  +  g  +  h-  %  Waste 

CAUSES 

Guide 

Questions 

R 

ESPONS1BILIT 

ES 

TOTAL  WASTE 

for 
Field 
nvesfi- 

Assigned 
Points 

Est.% 
Waste 

Points 
Waste 

ssigned 
Points 

Est.% 
Waste 

Points 
Waste 

s 

Est.  % 
Waste 

Points 
Waste 

«igned 
Points 

Points 
Waste 

^ator 

10 

^ 

100 

•50 

0.5 

.50 

K2 

2.4 

80 

1.92 

0.1 

80 

.24 

0.5 

60 

.30 

3.2 

2.46 

K3 

0.9 

60 

•  54 

0.9 

.54 

2 

K4 

1.0 

80 

•80 

0.3 

80 

•24 

1.3 

1.04 

J.E- 

K  5 

U 

100 

?.20 

2.2 

2.20 

1 

K  6 

0.2 

60 

•12 

O.I 

60 

.06 

03 

•18 

K  7 

5.0 

60 

J.OO 

1.6 

40 

•  64 

6.6 

3.64 

K  8 

K  9 

i2  "° 

K.IO 

0.9 

80 

.72 

0.9 

•12 

^  ^  a 

K  II 

0.2 

100 

•20 

ai 

80 

.08 

0.3 

.28 

."§.£? 

K    2 

0.2 

60 

•12 

60 

.06 

0-3 

.18 

&  ^  "  — 

K  IS 

40 

I.ZO 

1.4 

60 

.84 

4.4 

2.04 

3C  ^ 

K  14 

0.7 

40 

.28 

0.2 

40 

38 

0.9 

•36 

^  «T  § 

K  15 

0.9 

40 

•36 

0.9 

.36 

—    T>  5>~ 

K  16 

P    ^ 

K  17 

0.3 

60 

.18 

O.I 

40 

.04 

0.4 

•72 

^    w>  *o 

K  18 

O.I 

0.3 

0.4 

O   °    0 

K  19 

1.0 

80 

.80 

0.1 

60 

.06 

I.I 

.86 

o"§-5 

K  20 

0-4 

20 

.08 

0.4 

.08 

K  21 

0.7 

60 

•42 

0.2 

60 

.12 

0.9 

•  54 

*C    Q 

KTfe 

5.0 

60 

3..00 

2J 

60 

L26 

7./ 

4.26 

<+-   T3 

2.3 

80 

1.84 

04 

60 

.24 

2.7 

2.08 

P      ° 

§      E 

"o    ^ 

r  -S 

TOTAL 

?7.9 

18.88 

7.3 

3.96 

0.5 

.30 

.|  35.7 

e  [22.54 

1 

1.0 

60 

.60 

0.3 

60 

.18 

1.3 

.78 

Z 

80 

160 

0.2 

4-0 

.08 

2.2 

1.68 

"S  ° 

3 

0.3 

80 

•24 

0.3 

.24 

4 

4.4 

80 

3.52 

4.4 

3.52 

^  £  "a 

5 

3.5 

80 

2.80 

0.5 

60 

.30 

4.0 

3.10 

1  1   CTJ^- 

6 

0.8 

•64 

O.I 

40 

.04 

.68 

-El 

6.0 

80 

4.80 

2.? 

60 

1.32 

82 

6.12 

Z  8  t 

8 

4.5 

80 

3.60 

1.5 

60 

•90 

I.I 

60 

.66 

7.1 

5.IG 

5H 

K  -^  £ 

_o  £ 

•1  "§ 

TOTAL 

22.5 

11.60 

2.3 

1.32 

1.6 

2.16 

bl?8.4 

F  2I.Z8 

U   1 

0.1 

80 

.56 

0.7 

.56 

6.0 

80 

4.80 

11 

80 

1.76 

8-1 

6.56 

c 

U 

0.3 

80 

.24 

O.I 

60 

.06 

OA 

.30 

i 

U 

3.5 

60 

2.10 

0.5 

40 

•  20 

4.0 

2.10 

n 

U 

1.7 

80 

1.36 

0.5 

60 

.10 

2.2 

1.66 

£ 

1     > 

1.2 

60 

.72 

0,6 

40 

.24 

1.8 

.96 

UTI  L  IZATI  0  N 

Technical  Knowledge  and  Orgc 
and  Accounting  Factors 

u 

18 

80 

1.44 

0.4 

60 

.24 

2.2 

1.68 

04 

80 

•32 

0.4 

.32 

u 

O.I 

80 

.0$ 

0,2 

80 

.16 

0.3 

.2.4- 

u 

1.0 

80 

.80 

0.5 

60 

•30 

1.5 

.10 

I    I 

3.5 

80 

2.80 

0.5 

60 

.30 

3.10 

U   1 

0.9 

60 

•  54 

0.9 

.54 

u 

1.5 

60 

•90 

0.7 

40 

•  28 

2.2 

1,18 

U    5 

40 

•28 

0.7 

.28 

U 

1.0 

60 

•60 

0.5 

40 

•20 

1.5 

•80 

u  r 

0.2 

40 

.Of! 

O.J 

•  08 

u 

0.4 

40 

0.4 

•  16 

U  19 

2.0 

80 

1.60 

2.3 

60 

1.38 

43 

2.98 

Effectiveness  of 
Direction,  Contro 

TOTAL 

L?6.9 

19.38 

6.3 

J.36 

2.7 

e.o6 

C|35.9 

t.BO 

GRAND  TOTAL 

17.3 

|  5546 

15.9 

8.64 

£.8 

4.52 

djioo 

,62 

124 


WASTE  IN  INDUSTRY 


FIELD    REPORT  EVALUATION 

AMER   CAN    ENGINEERING    COUNCIL 
OF 

INDUSTRY  ^jftgP""*  PLANT  NO.  DB.P.                   EST.BY^X.C.                                     DATE  4/n/n 

>    ©  +  ®^  ®  ~®  Excellent  -0%  Waste     poor    =60%Waste                    a  +  b  +  C=  d  -100% 
S©  +  <B>  +  ®-®fS?       =«%;:       Bod     =80%    »                       e  +  f.g-h   -%Waste 

CAUSES 

Guide 

Questions 

R 

MANAGEMENT 

iSPONSIBILIT 

LABOR 

ES 

TOTAL 

WA:  re 

Field 
nvesti- 

gator 

%& 

Waste 

Waste 

Points 

Waste 

Waste 

hints 

Waste 

Waste 

Assigned 
Points 

Points 
Waste 

100 

0.5 

•  50 

c 

KZ 

2.* 

80 

I.9J 

0.3 

80 

.24 

0.5 

60 

.30 

3.2 

2.46 

8 

K3 

09 

80 

•72 

0.9 

.12 

h 

K4 

1  0 

80 

.80 

0.3 

80 

•24 

1.3 

1.04 

•0     C- 

K5 

?.l 

100 

2.2 

2.20 

II 

K6 

0.2 

60 

12 

0-1 

40 

•04 

0.} 

•  16 

f  1 

K7 

5.0 

60 

3.00 

1-6 

60 

.96 

6.6 

3.96 

It 

K8 

K9 

Z|"l 

KIO 

80 

.12 

0.9 

.12 

°V  § 

Kll 

80 

•16 

O.| 

60 

.06 

O.S 

•22 

1-  °  -^ 

KIZ 

02 

40 

.08 

0.1 

40 

•04 

0.3 

.12 

KB 

30 

60 

1.80 

1.4 

60 

.64 

4.4 

2.44 

*rf 

KI4 

0.7 

40 

.Z8 

OZ 

40 

•  08 

03 

•36 

£l 

K15 

z  ^  S 

K16 

0.9 

40 

.36 

0.0 

36 

K17 

03 

40 

•IZ 

0.1 

40 

.04 

0.4 

•16 

<s" 

Kl« 

O.I 

40 

•04 

0.5 

40 

.12 

0.4 

•  16 

0  5,8, 

KJ9 

1.0 

40 

40 

O.I 

40 

.04 

1.1 

•44 

^   -fc      0 

KM 

0.4 

20 

.08 

04 

.08 

0  "  "§ 

K2I 

0.1 

80 

.66 

o.z 

60 

.12 

0.9 

.68 

VH 

K72/J 

21 

80 

1.84 

04 

60 

•Z4 

2.7 

2.08 

I 

(A      C 

a    E 

•5  .& 

s  £ 

TOTAL 

219 

19.10 

1.3 

4.12 

0.5 

.30 

^5, 

e  ..-.  , 

Tl 

i.O 

60 

.60 

0.3 

60 

.18 

I.J 

.18 

fw> 

T2 

2.0 

40 

.80 

0.2 

40 

•08 

2.2 

.88 

a 

T3 

0. 

40 

•  12 

0.3 

.12 

_i  *  b 

T4 

4. 

80 

3.S2 

4.4 

5.52 

<l| 

T5 

3 

80 

Z.84- 

0.5 

60 

.30 

4.0 

3.14 

T6 

0. 

60 

.48 

O.I    • 

40 

.04 

0.9 

.52 

—   c  ^ 

T7 

b.( 

BO 

4.80 

2.2 

60 

1.32 

82 

6.IZ 

Z  $  -fc 

T8 

4 

80 

3.60 

I.S 

60 

.90 

I.I 

60 

•  66 

1.1 

5.16 

I  -1^ 

O   c  .  - 

w  »i 

»-•§! 

38 

TOTAL 

22.5 

16.16 

2-J 

I.V 

3.6 

2.16 

t^8.4 

f  12024 

Si 

0.7 

60 

.42 

0.1 

.42 

UZ 

6.0 

80 

4.80 

•Z.2 

60 

1.32 

8.2 

6-12 

§ 

U3 

0.3 

80 

•14 

0-1 

60 

.06 

0.4 

.30 

*: 

U4 

3.5 

60 

2.10 

0.5 

40 

•20 

4.0 

2.30 

s 

US 

1.7 

60 

t.OE 

9.5 

40 

•20 

2.2 

1.22 

1 

U6 

1.2 

80 

.96 

0-6 

60 

.36 

18 

1.32 

1 

U7 

'  8 

80 

1.44 

0.4 

60 

•24 

;•; 

1.68 

°« 

U8 

0.4 

80 

-.32 

04 

.32 

re  b 

U9 

O.I 

RO 

.08 

O.Z 

60 

.13 

0.3 

.20 

o  21 

yio 

Ull 

1.0 

60 

.60 

0.5 

CO 

.30 

1.5 

.90 

5|I 

"Is 

LJIZ 

1.5 

60 

2.10 

0.5 

40 

•20 

4.0 

230 

U13 

0.5 

40 

.36 

0.9 

.36 

U14 

1.5 

60 

.90 

0.1 

40 

.28 

2.2 

1.18 

U15 

o: 

60 

.42 

0.1 

•42 

U  T  1  L 

^eness  of  Technica 
jn,  Control  and  Ace 

UI6 

1.0 

80 

•80 

0.5 

60 

•30 

1.5 

.10 

UI7 

0.2 

40 

.08 

0.2 

.08 

ulfl 

O4 

40 

•  |6 

0.4 

•  16 

UI9 

?.o 

80 

1.60 

2.3 

60 

1.38 

4.3 

2.98 

I] 

uj  0 

TOTAL 

J6.9 

18.40 

6.3 

3.J4 

7.1 

I.6Z 

c  ».s 

g,zi.w 

•HAND  TOTAL 

77.1 

64.86 

IS.9 

8.Z8 

6.8 

4.08 

d  100 

hJ61-12 

THE  MEN'S  READY-MADE  CLOTHING  INDUSTRY 


125 


FIELD    REPORT  EVALUATION 

COMMIT! 
THE     FE 

EE    ON     ELIMINATION    OF    WASTE   1 

>4    INDUSTRY 

L 

SOCIETIES 

OF 
DERATED    AMERICAN      ENGINEERING 

INDUSTRY  t1<cioihfnilmade  PLANT  \\§.S.A.F.                    EST.BYc//*.C.                                        DATE<//*£/ 

>-    ©  +  ®  +  ®  -  ®  E*cellenf  =.  0°foWaste      Poor  =  6o°/o  Waste                 a  +  b  +  c  =  oUlOO°fo 
=    SHdK®-®'-         :%&!          Bad=80°|on                      •  +  f  ,9.  h  -  "loWaste 

CAUSES 

Cm  de 

Questions 

R  E 

SPONSIBILIT 

E  S 

TOTAL 

WASTE 

for 
Feld 
Investi- 

MM) 

Points 

Est.°|o 
Waste 

Points 
Waste 

Assigned 
Points 

Etft°|o 

Waste 

Points 
Vfaste 

Assignee 
PoinH 

Est.°|o 
Waste 

Points 
Waste 

Assigned 
Points 

Points 
Waste 

gator 

2 

3 

5 

to 

rk)and  Personnel, 
ationship 

XI 

.5 

100 

.50 

0.5 

.50 

Kt 

?  4 

80 

1.92 

0.3 

80 

•24 

0.5 

60 

-30 

3.2 

2.46 

M 

0.9 

80 

.12 

0.9 

.12 

K4 

1.0 

80 

•80 

0.3 

80 

.24 

1.3 

1.04 

K5 

7.2 

100 

?  20 

?.2 

2.10 

K6 

0.2 

100 

.20 

O.I 

60 

.06 

0.3 

•  26 

K1 

50 

60 

3.00 

1.6 

40 

.64 

6.6 

3.64 

is 

r|l 

o&^ 

8 

9 

0 

0.9 

SO 

.12 

0.9 

.12 

0.2 

80 

•16 

0,1 

80 

.08 

0.3 

.24 

ORG  A  N  1  1  AH 

Mechanism  of  Industry  astoType.Methods 
Assignment  and  Discharge  of  Responsibil 

K  I 

0-2 

100 

.20 

O.I 

60 

.06 

0.3 

•H 

J 

3-0 

60 

1.80 

1.4 

GO 

.S4 

4.4 

2.64 

14 

83 

40 

.28 

0.2 

40 

.08 

0.9 

.36 

5 

IN 

0.9 

40 

.36 

0.9 

•16 

in 

0.3 

40 

•U 

0.1 

40 

.04 

0.4 

•16 

KI8 

O.I 

40 

•04 

0.3 

40 

•  12 

04 

•  16 

KI9 

1.0 

40 

.40 

0.! 

40 

.04 

1 

.44 

KM 

04 

20 

.08 

0.4 

.08 

K2I 

0.1 

40 

•a 

0.2 

40 

.08 

0-9 

•36 

Kl'fe 

S.O 

60 

3.00 

2.1 

60 

1.26 

1.1 

4.26 

K1% 

2.3 

80 

1.84 

0.4 

60 

3A 

2.1 

2.08 

TOTAL 

719 

18.62 

1.1 

4.0E 

0.5 

.T>0 

o|35.1 

e|22,4 

»•! 

71 

1.0 

60 

.60 

0.3 

60 

.18 

3 

.18 

T2 

2.0 

80 

1.60 

02 

40 

.08 

J.2 

1.68 

ICAL 

ng  Knowled 
t  and  Mater 

T3 

0.3 

60 

.IS 

O.i 

•  18 

14 

44 

80 

44 

3.5Z 

T5 

3.5 

40 

1.40 

0.5 

40 

.20 

4.0 

1.60 

T6 

0.8 

80 

•64 

O.I 

40 

•04 

0.9 

.68 

T1 

6.0 

80 

4-80 

?.2 

60 

I.JO 

8.2 

6.10 

Z   t   § 

sit 

Hs| 
j| 

T8 

4.5 

60 

I.TO 

1.5 

60 

•  90 

I.I 

60 

.66 

1.1 

4.Z6 

TOTAL 

2Z.5 

15.44 

S.3 

1.22 

3.6 

2.14 

b  284 

f   18.80 

e 

y 

O.T 

80 

.56 

0.1 

.56 

U2 

S.O 

80 

4.80 

?.2 

80 

U6 

8.2 

6.56 

U3 

0.3 

80 

.24 

O.I 

60 

.06 

0.4 

•JO 

UTI  LI  7  ATI  OH 

Effectiveness  Of  Technical  Knowledge  and  Organizat 
Direction,  Control  and  Accounting  Factors 

4 

3.5 

60 

2.10 

0.5 

40 

•20 

4.0 

2.30 

5 

1.1 

80 

1.36 

0.5 

60 

•30 

2.2 

.66 

6 

t.2 

60 

/IE 

0.6 

40 

.24 

•96 

1 

1.8 

80 

1.44 

0.4 

60 

.24 

.68 

8 

0.4 

60 

.24 

.24 

9 

w 

60 

.06 

O.i 

60 

.12  J 

.18 

10 

j 

1.0 

80 

.80 

0.5 

60 

.30 

1.10 

12 

•5.5 

80 

?.80 

0.5 

60 

•10 

1.10 

0.9 

40 

.36 

.36 

14 

1.5 

60 

.90 

0.1 

40 

•28 

.18 

U5 

0.7 

40 

.28 

.28 

UI6 

1.0 

60 

.60 

0.5 

40 

•20 

•  80 

117 

0.2 

60 

•  12 

o.z 

.12 

UI8 

0.4 

80 

.32 

04 

.32 

U  9 

?.o 

60 

1.20 

2.3 

60 

1.58 

4..-J 

?.58 

TOTAL 

?6.9 

18.90 

6.3 

J.12 

?.1 

?.06 

C|35.9 

g  24.*8 

GRAND  TOTAL 

TIJ6 

52.96 

15.9 

9.64 

6.8 

4.50 

JJJJOO 

h  61-10 

126 


WASTE  IN  INDUSTRY 


FIELD  REPORT  EVALUATION 

COMMITTEE   ON     ELIMINATION    OF    WASTE  IN    INDUSTRY 
AMER  CAN    ENGINEERING     COUNCIL 
OF 
THE    FEDERATED    AMERICAN      ENGINEERING    SOCIETIES 

INOUSTRY*^«« 

"•frpLANTNa&./.A:                  EST.BYTW.*.                                    DATE  *//«/?/ 

>-    ©-t-®-H(f  =®  Excellent.  0%Wast.       Poor  =60  °/o  Waste                    a  +  b  +e  -d  «100°fo 
S    ®  +(D  +@  -  ®  Faird        ">4°oX  I!          «»ad  .  M*    „                       e*  f  *  9  -h  -  "loWaste 

CAUSES 

for 
Field 

:.-.--  ' 

MANAGEMENT 

LABOR 

OUTSIDE     CONTRACTS 

Assign* 
Points 

Points' 
Vtoste 

?P 

Waste 

Mnta 

N& 

EST.«Jo 
Waste 

«tiste 

s 

Waste         Waste 

ORGA  Nl  Z  AT  ION 
sm  of  Industry  as  to  Type,Methods(PaperWork)and  Personnel,  1 
lentand  Discharge  of  Responsibility  and  Relationship 

K 

O.S 

60 

OS 

2.4 

40 

••v 

u 

40 

-IZ- 

0.4 

40 

.It 

3.1 

1-24 

as 

60 

03 

.^4 

1.0 

60 

fro 

0.3 

60 

.18 

j  ^ 

IB 

2.2 

80 

1.1* 

2.Z 

L16 

0.1     ; 

V) 

.  : 

0-1 

40     1    .04 

as 

.- 

LO    ; 

60 

300 

1.6 

20        .12 

3.32 

0.9 

:  : 

]     40      ;     .08 

0.1      [             I     M 

.04 

0  12 

as 

i     100    i    3Q 

13 

.30 

I           1    3.0 

i     40    ,   1-20 

1.4     '                  40 

.56 

4.4         1  76 

- 

j     20         .14 

02                   !     40 

n     0-3 

.22 

u 

80        .64 

: 

20 

.02 

.     0.9 

•6C 

0.3     ' 

80 

.24 

ai 

80 

.08 

-     04 

^2 

0.1 

80 

.09 

0.3     ; 

80        .24 

0.4 

•3Z 

60 

0.1     >                   60       .06 

.66 

0         .    0.3 

: 

0.4 

40 

Z£ 

az 

40-    i    .08 

3.9 

•36 

*»           5.0 

CO 

••:: 

2.1 

60        I-Z6 

1.1 

4Jt 

-  __  Ll 

60 

04 

60^ 

.24 

II 

£  <     TOTAL 

?7.8 

?-.: 

7.4 

•:•: 

0.4- 

0.16 

a  :-F.t 

e  istd 

Tl 

1.0 

60 

.GO 

(X5 

60 

M 

1.1 

.18 

f  J 

T2 

20 

40 

•  80 

0.2 

40 

.08 

2.2 

•  88 

n 

0.1 

40 

•  12 

03 

.12 

">  *o 

60 

2.64 

4.4 

5.64 

g  ^ 

T5 

3-S     1 

20 

•10 

as 

40 

.;; 

4.0 

.90 

iTECHNIC 
bailable  Engineering  K 
istoProduct,Plantanc 

T6 

ae 

20 

.16 

O.I 

40 

.04 

0.9 

.20 

n 

6.0 

80 

4.80 

2.Z 

80 

1.16 

82 

6.56 

T8 

4.5 

60 

2.10 

1.5 

60 

.90 

I.I 

80 

•88 

T.I 

1 

TOTAL    22.5 

:  .-: 

2.3 

- 

3.6 

:  lEife 

f  !65fc 

ili 

U2 

CO 

-- 

AM 

2.7 

80      '    ,.16    1     S 

"Tw! 

U) 

03 

100 

.30 

O.I 

100 

. 

0.4 

04 

15 

60 

2.10 

O.S 

40  • 

-- 

-  g 

J.>0    ! 

US 

Ll 

40 

•C8 

as 

40 

-- 

2.2 

.88   j 

Ut 

1.2 

•- 

•24 

y 

40 

-i 

18 

Ul 

18 

40 

•1Z 

04 

20 

-c 

.80 

U8 

0.4 

100 

40 

-  ; 

•40 

m 

0.2 

.08 

O.I 

40 

•  04 

O.S 

•12    j 

uw 

UJi 

1.0 

20 

•20 

0-5 

feO 

.30 

l^ 

.50 

LIZAT1 

nical  Know! 
d  Accountir 

UIJ 

OJ 

40 

.36 

40 

•20 

i     4.0 
0.9 

'•so 

.36 

g  i 

I.S 

40 

•60 

0.7 

40 

.28 

•88 

UlS             0.1 

40 

; 

0.1 

.28 

U16 

1.0 

60 

•60 

as 

40 

.20 

1.5 

.80 

20 

ai 

ao 

.02 

0-4 

.08 

Effectiveness  o1 
Direction,  Contr 

1 

— 

_uo_ 

—  — 

_*o_ 

_^K_ 

_t5_ 

i 

I 

TOTAL    7L6.? 

i.i: 

:  '- 

i48 

2.7 

c  -.5  : 

9  ?•'-* 

6RAND  TOTAL    |  TU  j 

*2.I6 

16.0 

6.9* 

6.1 

-   'i 

d  too 

h  -:: 

THE  MEN'S  READY-MADE  CLOTHING  INDUSTRY 


127 


FIELD    REPORT  EVALUATION 

COMMITTEE    ON     EL1M1NAT  ON    OF    WASTE  IN     INDUSTRY 
AMER   CAN    ENGINEERING     COUNCIL 
OF 

WDUSTRY  Mff^0^}^fn""fe  PLANT  MO.  J.  N.A.                   EST.  BY  T.  W.ft                                     DATE  */f/" 

>-    ©  +  ®  -i-®-®  Excellent  =  0°/oWaste      Poor  ,  6o°/o  Waste                  a  +b  +  c  =d  =IOO°/O 
2   ®  +  ®  +  ®  -  @  ?°°         :4°o%  »         Bad  •  8°S|°    fl                    e  +  f  +  g-h  -  °/o  Waste 

CAUSES 

Guide 
Questions 
for 
Field 
Invest',- 
gator 

RESPONSIBILIT 

ES 

TOTAL  WASTE 

M  ANAGEME  NT 

LABOR 

OUTSIDE    CONTRACTS 

8? 

Points 
Waste 

Assigned 
P  mh 

Est.°|o 
Waste 

Waste 

Assigned 
Points 

E5t.°|o 
Waste 

Points 
Waste 

& 

Est.°|o 
Waste 

Points 
Waste 

1 

2 

J 

4 

5 

6 

1 

"$ 

9 

10 

U 

12 

13 

14 

If 

Kl 

0.5 

100 

0.5 

0.5 

.50 

K2 

t4 

SO 

1.44 

0.3 

40 

.12 

0.4 

40 

•  1C 

3.1 

LT2 

K3 

100 

0.9 

as 

.90 

K4 

1.3 

100 

1.3 

1.3 

.30 

K5 

2.2 

100 

?.Z 

2.2 

2.20 

ORGANIZATION 

Mechanism  of  Industry  as-toType,Methods(PaperWort<)a 
Assignment  and  Dischargeof  Responsibility  and  Relatic 

Kl 

3.3 

60 

1.98 

3.3 

40 

1.32 

66 

3.10 

K8 

0 

K9 

0 

K10 

0.9 

100 

0.9 

0.9 

.90 

Kll 

O.I 

100 

O.I 

0.2 

100 

O.ZO 

0.3 

•30 

Kit 

0.2 

100 

0.2 

O.I 

100 

0.10 

0.3 

.30 

J.t 

BO 

1.16 

2.2 

80 

i.16 

4.4 

3.52 

KI4 

0.9 

0 

0.00 

0.9 

1.00 

KI5 

KI6 

0.45 

50 

0.21 

0.9 

0.45 

KIT 

0-4 

0.4 

K18 

0.4 

0.4 

KI9 

'.0 

40 

0.40 

0.1 

40 

.04 

I.I 

.44 

KZO 

0.*. 

0 

0.00 

0.4 

K2I 

045 

50 

0.23 

0.45 

50 

.23 

0.9 

•45 

KT/5 

6.0 

50 

3.0 

MO 

50 

.55 

1.1 

3.55 

KT/j 

1.4 

60 

0.8 

1.30 

60 

.80 

2.1 

1-60 

TOTAL 

24.8 

16.11 

10.4 

5.38 

0.4 

0.16 

^5.6 

e|?i.&i 

*-! 

Tl 

1.0 

0.50 

0.3 

O.Z 

1.3 

10 

n 

7.0 

40 

.80 

0.2 

40 

.08 

J.2 

•86 

TECHNICAL 

Available  Engineering  Knowled 
as  to  Product,  Plantand  Mater' 

Tl 

03 

40 

0.1 

T4 

4.4 

40 

1.16 

44 

16 

T5 

35 

40 

1.40 

0.5 

40 

.20 

4.0 

1.60 

T6 

0.8 

40 

•  32 

O.I 

40 

.04 

0.9 

•36 

T7 

6.0 

60 

3.  SO 

2.2 

60 

1.32 

82 

T8 

5.6 

60 

?.IG 

24 

60 

1.44 

I.I 

40 

•  44 

1.1 

4.04 

TOTAL 

71.6 

10.66 

3.E 

1.16 

3.6 

1.96 

b|?8.4 

f  14  .36 

UTILIZATION 

Effectiveness  of  Technical  Knowledge  and  Organization. 
Direction,  Control  and  Accounting  Factors 

Ul 

0.1 

40 

.28 

0." 

.28 

02 

e.o 

60 

3.60 

2.2 

60 

1.32 

8. 

4.92 

U3 

0.1 

100 

30 

0.1 

100 

.10 

0. 

.40 

U4 

3.5 

40 

1.40 

0.5 

40 

•  JO 

4.  ) 

1.60 

US 

1.1 

40 

.68 

0.5 

40 

•20 

2. 

.88 

U6 

0.9 

40 

•36 

0.9 

40 

•36 

1.  \ 

•IE 

U7 

1.8 

60 

1.08 

0.4 

40 

.16 

?.2 

114 

U8 

0.4 

50 

.20 

0.4 

20 

U9 

O.I 

20 

•  02 

B 

40 

.08 

0.3 

.10 

UK) 

Ull 

1.0' 

40 

.40 

0.5 

60 

•  03 

1.5 

rro 

UI2 

3.5 

SO 

1.15 

0.5 

50 

•  25 

4-0 

2.00 

Ull 

r0.9 

20 

•  18 

0.9 

•  18 

UI4 

1.5 

20 

.30 

0.7 

40 

.28 

?.Z 

•58 

40 

.28 

0.1 

UI6 

1.0 

40 

.40 

o.s 

40 

.20 

1.5 

•60 

un 

0.2 

.04 

0.1 

.04 

0.4 

100 

•40 

0.4 

U  19 

e.is 

41 

I.OZ 

J.I5 

41 

1.02 

4.1 

2.04 

TOTAL 

26.15 

12/19 

6.45 

?.85 

2.1 

1.62 

C  55.9 

q|n.26 

GR  AND  TOTAL 

13.15 

39.58 

JO.OB 

9.99 

G.T 

3.14 

d  100 

h|533l 

128 


WASTE  IN  INDUSTRY 


FIELD    REPORT  EVALUATION 

COMMITTEE    ON     ELIMINATION    OF    WASTE   IN    INDUSTRY 
AMERICAN     ENGINEERING     COUNCIL 
OF 

INDUSTRY  "ciothina^"""16   Pt-ANT  NO.  C.£G                     EST.BYM.i.C                                      DATE  4/n/ZI 

>-    ©  +  ®  +  ®=®  Excellent  =0%  Waste       Poor  =  60  °/o  Waste                  a  +b  >C  -d  =100% 
*    ®+®+®  =  ®Fa°r         I'M,!!          Bad-BOlo-                       e  +  f*g-h      '/oWcs* 

8 

a 
< 

Guide 

fettfm 

RESPONSIBILIT 

E  S 

TOTAL  WAS1E 

MANAGEMENT 

LABOR 

S 

Points 
Waste 

Field 
mesti- 

H«Md 

Points 

Est.°|o 
Waste 

Points 

Est.°|o 
Waste 

Points 

Y3-,te 

s 

Est.°|o 
Waste 

Points 
Waste 

Waste 

Points 

go+or 

2. 

10 

14 

f 

Kl 

as 

to 

.30 

0.5 

.10 

c 

K2 

7.4 

?0 

.4ft 

0.3 

40 

.12 

0.4 

40 

.20 

3.1 

.80 

£ 

K3 

OJ 

JO 

.18 

0.9 

•  18 

fc     E_ 

M 

1.0 

20 

.20 

0.1 

20 

•  06 

1.3 

•26 

•o  "§ 

K5 

?.l 

60 

1.32 

2.2 

.32 

II 

K6 

O.Z 

O.I 

.04 

0.3 

•04 

-£  ^ 

Kl 

5.0 

1  6 

20 

.32 

6.6 

•12 

Is 

KB 

fc  "° 

K9 

r  !•§ 

0.9 

40 

.36 

0.9 

.16 

ORG  A  N  I  Z  AT  1  0 

Mechanism  of  Industry  astoType,Methods(Pc 
Assignment  and  Discharge  of  Responsibility 

Kll 

O.Z 

20 

.04 

O.I 

60 

.06 

u 

.10 

KIZ 

0.2 

?0 

.04 

O.I 

40 

.04 

0.3 

.08 

Kl> 

30 

20 

.60 

1  4 

20 

.28 

4.4 

88 

K14 

0.1 

20 

•  14- 

Ot 

40 

.08 

0.9 

.21 

HIS 

O.S 

80 

fe4 

•0.1 

«0 

.02 

03 

.66 

j-j. 

KIT 

0.3 

10 

.03 

0.1 

20 

.02 

a* 

•05 

KI8 

0. 

20 

.02 

0.3 

40 

.12 

0.4 

.14 

KJ9 

I  0 

O.I 

I.I 

K20 

OA 

0.4 

K2I 

O.T 

o.z 

to 

•04 

as 

.04 

KT'b 

5.0 

to 

1.00 

2.1 

40 

•84 

1.1 

1.84 

K72!} 

?.* 

40 

-92 

0.4 

20 

•08 

2.1 

1.00 

TOTAL 

11.  » 

6t1 

T4 

2.12 

0.4 

0.2 

aa35.e> 

e'8.59 

TECHNICAL 

Available  Engineering  Knowledge 
astoProduct,Plantand  Materials 

Tl 

1.0 

eo 

.60 

0.3 

60 

•19 

i.j 

.18 

T2 

?.o 

20 

.40 

0.2 

40 

.08 

2.2 

.48 

T3 

40 

.12 

0-1 

•12 

T4 

4.4 

20 

.88 

4-4 

•  88 

T5 

3.5 

20 

.10 

0.5 

40 

.20 

4.0 

•90 

TS 

0.8 

20 

.16 

0.1 

40 

.04 

0.9 

.20 

Tl 

60 

10 

•  60 

t.l 

.  40 

.88 

8.2 

1.46 

T8 

4.5 

20 

.90 

1.5 

40 

•  60 

I.I 

40 

•44 

1.1 

1.94 

TOTAL 

22.5 

4-36 

2.3 

0.92 

3.6 

1.50 

»!??.« 

f  6.18 

UTILIZATION 

Effectiveness  of  Technical  Knowledge  and  Organization. 
Direction,  Control  and  Accounting  Factors 

U2 

60 

zo 

UO 

2.2 

80 

1.16 

8.2 

2.96  J 

US 

0.3 

BO 

.Z4 

O.I 

40 

.04 

0.4 

.28 

35 

4P 

1.40 

0.5 

40 

-JO 

4.0 

.60 

U5 

1-7 

70 

•34 

0.5 

40 

.20 

7.2 

.54 

ui 

14 

10 

.12 

0.6 

40 

.24 

1.8 

.36 

Ul 

40 

•11 

0.4 

•20 

•08 

2.? 

.80 

US 

20 

.08 

0.4 

.08 

Ui 

20 

.02 

0.2 

40 

.08 

0.3 

•  10 

_U10 

UM 

to 

.20 

0.5 

60 

.30 

•5 

.50 

to 

.10 

0.5 

40 

.to- 

4.0 

.90 

UQ 

20 

.18 

0.9 

•  18 

U14 

40 

.66 

0.1 

40 

•28 

2.2   . 

.88 

UI5 

40 

•  26 

0.1 

2! 

UIC 

10 

.10 

0.5 

40 

.20 

I.S 

.10 

un 

to 

•04 

at 

.04 

UI8 

40 

.16 

0.4 

.16 

UI3 

?.o 

20 

•20 

2.3 

40 

.92 

4.3 

I.It 

TOTAL 

Z6.9 

6.86 

u 

?.44 

M 

:.os 

C  5J.9 

gm_6 

GRAND  TOTAL 

11.2 

11.49 

16.0 

5.48 

fc.l 

3.ie 

d  100 

h  26.13 

THE  MEN'S  READY-MADE  CLOTHING  INDUSTRY  129 


ACKNOWLEDGMENT 

In  the  absence  in  the  clothing  industry  of  any  employers'  organiza- 
tion such  as  facilitated  similar  studies  in  other  industries,  we  feel  under 
special  obligations  to  the  individual  firms  in  several  clothing  markets 
who  assisted  us  in  various  ways,  and  to  the  Clothing  Manufacturers' 
Association  of  New  York,  through  President  William  A.  Bandler.  Since 
united  efforts  of  this  kind  have  not  been  common  practice  in  this  indus- 
try, the  cordial  response  to  Herbert  Hoover's  request  for  co-operation  is 
especially  appreciated. 

Without  the  services  of  Dr.  Thomas  W.  Mitchell,  who  really  acted 
as  co-author  of  this  report,  the  collection  of  the  data  and  their  presenta- 
tion would  have  been  impossible  in  the  time  and  with  the  resources  at  our 
disposal.  Dr.  Mitchell's  work  as  production  engineer  for  the  New  York 
Clothing  Market,  and  later  as  production  advisor  in  individual  plants 
fitted  him  specially  for  this  task.  I  want  also  specially  to  mention  the 
services  of  Mr.  Joseph  A.  Carlin,  both  in  the  field  and  later  in  the  office 
determinations. 

MORRIS  LLEWELLYN   COOKE. 


130 


WASTE  IN  INDUSTRY 


a: 

i- 

co 
3 

LJ  O 
h-Z 
(f>  ~~ 
<UJ 


1/3  Z 
UJ  < 

0  I- 


O  to 

UJ 

X 

h- 
z 


If  JPJs! 

r^y   i-i"0^-0' 

Inadequate 
personnel 

management 

_! 

Ill 

I! 

a   D 

1| 

£s 

L 

i/> 

0  UJ 

*£      ljf-!i|| 

*~  t- 

Q  ?     jiij"^  §  §1 

R1BUTABLE 
R  DIFFICUL 

FH  Frn 

Waste  of 

i 
| 
j 
\ 

Lackoftrainin 
of  cutters 

t4-     •* 

0     0 

il 

r  o 

0)              ''f   0 

L 

i 

«< 

i>l'lilll| 

0 

?|  s§^l 
5^  Ill-si! 

5fe    gl-ej) 

-1! 

t 
1 
P 

:essi've 
entories 

fit 

t| 

S 

tS.I 

llii 

|_ 

1 

i 

- 

11 

f£ 

- 

UJ    *~ 

11 

. 

r  ~s    ~i 

§   .i          ' 

1                          fc       -H                     | 

00   < 

5^ 

|| 

1                ?      3       •§                |l 

je"5   1   Z  P        §| 

^ 

r£  fc      >  -i?  §     'S  . 

11 

"H'l 

- 

111 

|3|    ^j?£-   .^g       j| 
l||     c'Sf    -11      81 
.ILlfl    §^^    §^ 

IS-ll^-ffi     N'i^l 

ili*!^!  ^.i^^^ 

|c^^"5'3'"§'-pj?£3":5| 

Losttime  du 
planning  and 

- 

Poor  delivery 
of  materials 

- 

l1fs1^l|'i|l|1l 

- 

1, 

a  35 

11 

- 

CHAPTER  VII 
THE  BOOT  AND  SHOE  INDUSTRY 

BY  SANFORD  E.  THOMPSON 

Size  of  the  Shoe  Industry. — Boot  and  shoe  manufacture  is  the  giant 
of  the  group  of  leather  industries,  nearly  equaling  in  the  value  of  its 
products  the  combined  value  of  all  the  other  trades  in  this  group. 

Shoe  manufacture  is  one  of  the  most  highly  competitive  of  the  indus- 
tries, having  about  1300  producing  companies,  the  largest  of  which  manu- 
factures about  6%  of  the  total  output.  No  trusts  have  been  formed  in  the 
shoe  industry  and  no  agreements  or  pools  exist. 


1909 

1914 

1921 

Value  of  output  . 

$442  630,726 

$501,760,458 

$1,300,000,000 

Capital  invested  

197,090,344 

254,590,832 

500,000,000 

Pairs  produced  
Numbers  engaged  
Value  of  earnings 

285,017,181 
200,847 
109  646  165 

292,666,468 
210,348 
128  623475 

300,000,000 
225,000 
280,000,000 

Figures  for  1909  and  1914  are  from  1914  U.  S.  Census  of  Manufactures. 
Figures  for  192 L  are  estimated,  after  consulting  the  latest  published  and 
unpublished  data,  since  no  exact  figures  are  yet  available. 

New  England  produces  about  53%  of  the  shoes  made  in  the  coun- 
try; New  York,  14%;  Missouri,  8%;  Ohio,  6%;  and  Pennsylvania, 
5|%.  The  relative  value  in  the  12  leading  states  in  1914  is  shown  in 
Figure  1,  The  remaining  production  is  scattered  all  over  the  country. 
The  average  output  per  employee  is  about  5.1  pairs  per  day,  based  on 
an  average  of  the  entire  year.  The  range  in  these  shops,  due  to  styles 
and  plant  conditions,  is  from  3  to  12  pairs  per  operator  per  day.  The 
far  reach  of  shoe  production  is  shown  by  the  fact  that,  excluding  hides, 
the  materials  used  to  make  a  pair  of  shoes  come  from  some  twenty-five 
countries.  The  exports  of  shoes  are  shown  in  Figure  2. 

Nature  of  Problems  to  be  Solved. — Shoe  making  as  a  manufacturing 
process  did  not  begin  its  existence  until  the  middle  of  the  last  century. 
Before  that  time  shoes  were  made  by  the  wearer  or  by  the  village  cobbler. 

131 


132 


WASTE  IN  INDUSTRY 


The  growth  of  the  industry  once  under  way  was  rapid  and  at  the  present 
time  shoe  machinery  is  in  a  high  stage  of  development.  Development  of 
methods  and  management,  except  in  a  very  few  establishments,  has  not 
kept  pace  with  the  machinery. 


( 

MASS. 
NEW  YORK 
MISSOURI 

Mil 

ions  of  Dollars 
3                 120                160               20 

•••••• 

, 

N.H. 

^^^^Bf 

OHIO 
PENN. 

SP* 

VALUE  OF  BOOT  AND  SHOE 
FOR  12  i  EADIHG5JA7ES  - 

^RODi/CTS 
'9U&I909 

MAINE 

maam 

1914  • 

=]f909 

WISCONSIN 

••p 

ILLINOIS 

mam 

NEWJERSEY 

mm 

MINNESOTA 

• 

MICHIGAN 

f 

40  80  l?0  160  200 

Millionsof  Dollars 

FIG.  1. 

The  varieties  of  style,  the  number  of  sizes  and  widths,  the  multiplicity 
of  operations  in  making  a  shoe  complicate  the  processes  and  tend  to  cause 
congestion  between  departments  and  irregularity  of  flow  of  work.  This 
results  in  wasted  time  of  the  shoe  worker  with  the  consequent  dissatis- 
faction and  unrest  and  a  loss  in  production  and  in  overhead  cost  to  the 


1916 
1911 
1918 
1919 
I9^0 

\ 

20,3 
1059 

20 

58,472 
f 

15,89 

i 

SMi 

* 

Hft,4i> 

20,  2  8  9,55  J 

)       1        4        (. 

8        10       \l       14        16      18       20      Zl 

Millions  of  Pairs 

FIG.  2. — Exports  of  Shoes  from  the  United  States  During  Twelve  Months  Ending 
June  30,  Each  Year  Since  1916— Expressed  in  Pairs.  (Courtesy  of  Merchants' 
National  Bank,  Boston,  Mass.) 

manufacturer.     In  a  few  factories  these  difficulties  have  been  overcome 
to  an  appreciable  degree. 

A  most  serious  situation  lies  in  the  over-capacity  of  shoe  plants.  The 
capacity  of  shoe  manufacturing  plants  in  the  United  States  is  approxi- 
mately 1,750,000  pairs  of  shoes  per  day.  The  average  production  is 
about  977,000  pairs  for  a  300-day  year. 


THE  BOOT  AND  SHOE  INDUSTRY  133 

Preliminary  processes  of  tanning  and  preparation  of  the  leather  greatly 
affect  the  wearing  qualities  of  the  shoe  as  well  as  the  cost  of  the  finished 
leather.  These  factors,  however,  have  not  been  taken  up  in  this  report. 

Causes  of  Waste. — In  boot  and  shoe  manufacture  the  causes  of  waste 
are  recognized  as: 

I.  Seasonal  business  complicated  by  variety  of  styles. 

II.  Imperfect  control  of  production  involving  the  organization,  the  handling 
and  distribution  of  supplies,  and  the  planning  and  routing  of  work  and 
material. 

III.  Wastes  of  material  and  losses  through  defective  shoes. 

IV.  Labor  difficulties  affecting  the  relations  with  the  employees. 

Under  these  four  general  divisions  falls  the  discussion  which  follows 
in  subsequent  pages  of  this  report. 

It  will  take  time  and  educational  work  on  the  part  of  the  manu- 
facturer to  stabilize  the  seasonal  influence  in  the  boot  and  shoe  industry. 
That  this  can  be  done  to  a  large  degree  is  shown  by  the  results  obtained 
in  a  few  factories,  to  which  attention  is  called  in  the  pages  which  follow, 
by  manufacturing  shoes  for  stock  in  dull  periods  and  by  co-ordinating 
sales  with  production. 

The  imperfect  factory  organization,  showing  itself  particularly  in 
congestion  in  and  between  departments,  causes  time  wastes  which  range 
between  25  and  35%  of  the  working  time,  and  these  can  be  largely  pre- 
vented by  every  manufacturer.  Few  shoe  factories  have  made  even  an 
approach  to  the  methods  which  have  prevented  such  waste  in  other 
industries.  Today  we  find  one  department  piled  with  work  and  others 
slack.  Dissatisfaction  among  employees  naturally  results.  Those  idle 
are  antagonized  because  their  earning  ability  has  been  impaired  by 
causes  beyond  their  control.  Those  working  in  congested  departments 
are  irritated  by  the  nagging  of  their  executives.  Manufacturers  must 
learn  their  own  operating  capacity,  not  from  somebody's  opinion,  but 
from  time  study  and  from  job  analysis  made  in  co-operation  with  the 
workers. 

Losses  in  material,  as  will  be  discussed  later,  are  due  chiefly  to  imperfect 
grading,  waste  in  cutting  upper  leather,  and  imperfections  in  shoes.  Much 
time  is  involved  in  the  repairs  to  shoes  injured  in  process.  "  Doping  " 
of  the  leather  is  frequently  resorted  to  to  cover  up  imperfections. 

The  nightmare  of  every  shoe  worker,  except  in  a  few  shops  that  have 
standardized  production  methods,  is  the  constant  fear  of  unemployment. 
Add  to  this  the  loss  in  time  when  he  is  actually  on  the  job  waiting  for  shoes, 
and  we  have  a  picture  of  the  situation.  Manufacturers  estimate  that  the 
average  shoe  maker  spends  only  65%  of  his  possible  productive  hours 
in  work;  35%  of  his  time  is  spent  in  idleness.  That  this  is  a  conservative 
figure  is  indicated  by  the  Figure  3,  showing  the  working  and  idle  time  of 


134 


WASTE  IN  INDUSTRY 


a  competent  shoe  worker  for  a  period  of  seven  years,  and  this,  it  will  be 
noted,  does  not  allow  for  time  lost  while  on  the  job. 

Labor  difficulties  when  traced  back  to  their  fundamentals  are  found 
to  be  due  largely  to  this  irregularity  of  work  and  to  the  lack  of  knowledge 
of  the  time  and  the  methods  required  for  the  various  operations.  The 
idle  time  is  reflected  in  high  piece-rates,  since  employees  must  look  not  at 
weekly  earnings  but  at  annual  income.  It  costs  as  much  to  live  when  one 
loafs  as  when  one  works. 


\HOUffSWOHKED 


*  IN  DIC A  TfS  DA  TEAT  WHICH  WORKIN6  HOUPS 
WERERFDUCEDF/fOMSOHOURSPERWEfKTDfS 


if>     O     tf>O 

1914  1915  1916  1917  1918  1919  1920 

Hours 

FIG.  3. — Diagram  Showing  Hours  Lost  and  Hours  Worked  for  a  Shoe  Cutter  for  Seven 
Consecutive  Years.  This  cutter  is  an  expert  and  in  order  to  work  the  hours  in- 
dicated, he  was  forced  to  jump  from  shop  to  shop  every  season.  If  he  had 
stayed  in  one  shop,  he  could  not  have  worked  as  much  as  chart  shows. 

Results  of  Lost  Production. — The  loss  in  production  from  idleness 
results  in: 

1.  Dissatisfaction  among  employers  and  employees,  and  resulting  strife. 

2.  Higher  cost  of  boots  and  shoes. 

3.  Excessive  piece  prices. 

4.  Exorbitant  overhead  cost. 

The  peculiar  feature  is  the  fact  that  nobody  knows  the  amount  of  this 
lost  time.  No  records  are  kept  of  the  actual  working  time  of  the  piece- 
workers. This  lack  of  knowledge  of  facts  interferes  with  intelligent 


THE  BOOT  AND  SHOE  INDUSTRY 


135 


dealings.  Piece-rates  are  set  by  guess.  Bartering  takes  the  place  of 
agreements  based  on  facts.  Arbitration  falls  flat.  Decisions  can  be 
based  only  on  opinions  and  the  parties  remain  as  far  apart  as  ever. 


I.  SEASONAL  BUSINESS 

Seasonal  Fluctuations. — Shoes  are  purchased  by  the  retailer  in  the 
spring  and  fall.  The  seasonal  fluctuations  are  illustrated  vividly  in  the 
curves  in  Figures  4,  5  and  6.  Although  the  location  of  the  peaks  in  these 
charts  is  somewhat  affected  by  war  business,  the  trend  in  other  years  is 
similar.  Note  that  sales  in  the  maximum  and  minimum  months  range 
from  243%  to  280%  above  the  average,  and  from  87%  to  89%  below. 


100,000 


1918  1919  .         1920 

FIG.  4. — Diagram  Showing  Seasonal  Ordering  and  Efforts  to  Overcome  by  Operating 
51  Weeks  a  Year.  This  Company  Makes  Nationally  Known  Goodyear  Welt  and 
Turn  Shoes  for  Men  and  Women. 

The  average  women's  shoes  are  purchased  by  style  alone,  and  these  can- 
not be  made  up  long  in  advance.  Even  in  men's  shoes,  the  production 
as  shown  in  Figure  6  discloses  a  fluctuation  from  168%  above  the  average 
to  47%  below  the  average  for  a  three-year  period.  In  factories  producing 
women's  shoes  the  variation  is  still  greater,  as  is  illustrated  in  the  pro- 
duction curves  in  Figures  7,  8,  and  11.  These  are  all  typical  conditions. 
The  major  variations  in  the  curves  are  due  to  the  fluctuating  sales  demand. 
The  entire  business  of  shoe  manufacture  involves  a  decision  on  style, 
kind  of  leather,  color  of  leather,  and  low  versus  high  shoes.  Affecting  these 
things  to  a  marked  degree  are  the  styles  in  dresses  and  hosiery.  Expect- 
ing increased  wear  of  woolen  hose  in  the  fall  of  1921,  one  manufacturer 
estimates  a  demand  for  80%  low  shoes  to  20%  high,  against  his  usual 
demand  of  40%  low  to  60%  high.  He  is  making  up  in  the  spring  his 


136 


WASTE  IN   INDUSTRY 


advanced  line  on  this  basis.     If  long  skirts  should  come  into  style  creat- 
ing a  demand  for  boots,  this  manufacturer's  guess  would  be  in  error. 


1918  1919  1  1920 

FIG  5. — Diagram  Showing  Seasonal  Ordering  and  Efforts  to  Overcome  by  Operating 
51  Weeks  a  Year.  This  Company  Manufactures  Men's  and  Boy's  Welts,  McKays 
and  Nail  Shoes. 


i.ooopoo 


1918  1919  1920 

FIG  6. — Diagram  Showing  Seasonal  Ordering  and  Unsuccessful  Efforts  to  Overcome 
Irregular  Production.  This  Company  Manufactures  Men's  Welts.  Actual  pairs 
multiplied  by  4  to  be  comparable  with  Figs.  5  and  6. 

Losses  from  Fluctuations  in  Business. — It  is  fair  to  assume  that  the 
difference  between  the  working  time  over  a  short  period  of  the  year  and 
the  average  working  time  through  the  year  is  the  loss  due  to  seasonal 


THE  BOOT  AND  SHOE  INDUSTRY 


137 


production.  Examining  the  curves  referred  to,  we  find  the  average 
working  time  through  three  consecutive  years  (omitting  the  period  of 
depression  in  the  fall  of  1920)  is  68%  of  the  average  maximum  for  three 
consecutives  months  in  each  year.  This,  it  will  be  noted,  compares 


4 

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\ 

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FIG.  7. — Diagram  Showing  Fluctuation  in  Production  as  a  Cause  for  Decreased  Produc- 

|  tion  per  Operator.     Factory  Manufactures  Women's  Welts  and  Turns.     Actual 

figures  have  been  multiplied  by  10  to  make  them  comparable  with  Figs.  8,  9  and  10. 


600,000 
500,000 

rt  400,000 

i_ 
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°~  300,000 

200,000 
100,000 
0 

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K.._..     .-.|9]8 > -1919—   -—>\< —  1930 >J 

FIG.  8. — Diagram  Showing  Fluctuation  in  Production  as  a  Cause  for  Decreased  Produc- 
tion per  Operator.  This  Factory  Makes  Women's,  McKays,  Welts  and  Turns. 
Actual  figures  have  been  multiplied  by  10  to  make  them  comparable  with 
Figs.  7,  9  and  10 

closely  with  the  working  time  of  the  shoe  cutter  shown  in  Figure  1.  On 
the  other  hand,  referring  to  Figures  9  and  10,  it  is  seen  that  two  of  the 
plants  in  the  group  have  increased  their  average  working  time  through 
special  efforts  to  88%  of  the  maximum  period.  The  improvement  shown 
by  these  charts  reflects  the  efforts  of  the  management  applied  to  sales. 


138 


WASTE  IN  INDUSTRY 


Pairs 
500,00 


400,000 
100,001 


200,000 


100,000 


$ 


6000 
5500 
5000 


g 
35000" 

•5 
3000  £ 


;§lg|glllii| 

1918  I  1919  1920 

FIG.  9.— Diagram  Showing  Fluctuation  in  Production  as  a  Cause  for  Decreased  Produc- 
tion per  Operator.  This  factory  manufactures  Men's  Welts  and  Women's  Welts 
and  Turns. 


/ 

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500,000 

A 

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a- 

300,000 

ttoyooo 

100,000 

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3000  o 
7500° 
2000 
500 
000 
500 

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I9!9                                        1919 

1 

9^ 

FIG.  10. — Diagram  Showing  Fluctuation  in  Production  as  a  Cause  for  Decreased 
Production  per  Operator.  This  Factory  Makes  Men's  and  Boy's  Welts,  McKays 
and  Nails. 


THE  BOOT  AND  SHOE  INDUSTRY 


139 


Effects  of  Novelty  Styles. — It  is  evident  that  the  style  of  the  shoe  is 
becoming  of  greater  and  greater  importance.  It  has  been  said,  in  fact, 
that  millinery  in  footwear  is  outstripping  millinery  in  hats. 

A  woman  buys  four  pairs  of  shoes  to  one  pair  purchased  by  a  man. 
This  is  shown  by  actual  data  on  sales.  It  is  due  partly  to  style  and  partly 


28000 
26000 
24000 

moo 

20000 
18000 
16000 
14000 


12000 
10000 
8000 
6000 

4000 

2000 

0 


1918  I  1919 

FIG.  11. — Diagram  Showing  Irregular  Monthly  Production  of  a  Middle  Western  Plant 
Making  Misses'  Fine  McKay  and  Welt  Shoes. 


Cents  per  Pair 
10       ?0      30      40       50      60 


90 100 


Covered  Heels 
Vamn  Saddles 
Wing  Tips 
Scotch  long  ues 
Buckles 
Lace  Stays 
Fancu  stitches 

6        10       20       30        40       SO       60       TO 
Cents  per  Pair 

FIG.  12. — Diagram  Showing  Extra  Manufacturing  Cost  of  Several  Novelties  per  Pair 
Over  the  Base  Cost  of  a  Shoe.  This  Factory  Manufactures  Women's  High-grade 
Welts  and  Turns. 

to  the  shorter  wearing  quality  of  women's  shoes  because  of  thinner  soles 
and  uppers  and  poorer  quality  of  leather.  During  the  spring  season  of 
1921  the  manufacture  of  novelties  was  greatly  augmented  by  the  efforts 
of  the  shoe  manufacturer  to  create  demand  by  manufacturing  novelties 
for  immediate  sale.  This  temporarily  increased  the  production  of  women's 
shoes,  but  the  move  was  not  economical;  it  resulted  in  high-priced  shoes, 


140 


WASTE  IN  INDUSTRY 


as  nearly  twice  the  amount  of  work  was  required  in  the  stitching  room. 
Eventually  such  a  practice  reacts  against  both  dealers  and  manufacturers 
because  of  the  unsalable  goods  of  the  novelty  type. 

The  increased  cost  of  different  types  of  novelty  design  over  the  cost  of 
the  ordinary  shoe  is  shown  in  Figure  12.  If  all  of  these  changes  were  made 
in  the  same  shoe,  it  would  mean  an  increase  in  labor  cost  of  $2.80  per  pair 
over  any  base  shoe  without  novelties.  Extra  material  is  used  for  straps 
and  other  parts,  but  this  cannot  be  figured  as  an  item  of  expense  because 
it  can  be  worked  out  of  scrap  material.  In  fact  the  fancy  treatment 
frequently  permits  the  use  of  cheaper  stock  throughout.  This  results, 
however,  in  less  desirable  qualities  of  shoes  so  that  there  is  further  actual 
loss  to  the  wearer.  Saddle  straps,  so  popular  in  1921  with  both  men  and 
women,  hurt  the  feet  in  many  cases  but  still  are  selected  because  they  are 
stylish. 

Increased  Cost  of  Shoes  Over  the  1914  Base.— The  tables  which  follow 
indicate  the  increased  cost  of  typical  men's  shoes  and  typical  women's 
shoes  over  the  1914  base  price. 

DETAILED  COSTS  OF  WOMEN'S  NINE-INCH  BLACK  KID  BOOT  (14-8)  HEEL 


July, 
1914 

July. 
1919 

May, 
1920 

Dec., 

1920 

March, 
1921 

Uppers  

$1  05 

$3.75 

$3.25 

$2.10 

$1.25 

Trimmings  
Tongues 

.08 
04 

.20 
1138 

.225 
20 

.13 
14 

.12 
12 

Linings 

04 

2050 

135 

085 

075 

Laces 

025 

06 

105 

065 

059 

Eyelets 

025 

0466 

0565 

.0525 

07 

Sole  

22 

.75 

65 

35 

.32 

Insole  

11 

30 

.24 

.18 

.14 

Counter  

.045 

.08 

.05 

.05 

.05 

Box 

015 

04 

035 

035 

03 

Heel 

045 

10 

09 

10 

06 

Toplift 

02 

03 

025 

025 

04 

Welt 

05 

10 

10 

075 

.0725 

Shank 

015 

02 

01 

Oil 

0110 

Carton  and  Case 

04 

0736 

105 

10 

10 

Findings  . 

12 

.18 

Labor  

54 

1  40 

1  12 

1.12 

1.12 

Royalty  

055 

.055 

.0466 

.0466 

.0466 

Selling  and  Discount  
Overhead  

.335 
.335 

1.00 
1.00 

.95 
.95 

.75 

.75 

.75 

.75 

Profit 

165 

50 

475 

375 

.375 

$3.370 

$10.0040 

$8.8181 

$6.5401 

$5.5591 

Courtesy  Boot  &  Shoe  Recorder. 


THE  BOOT  AND  SHOE  INDUSTRY 


141 


DETAILED  COSTS  OP  MAN'S  RUSSIA  CALF  BAL 
(The  Actual  Factory  Sheet) 


Item 

July, 

December, 

July, 

December, 

March, 

1914 

1918 

1919 

1920 

1921 

Upper  Stock,  3  ft  

@$.31- 

©$.73- 

©$1.50- 

©$.60- 

©$.50- 

.93 

2.19 

4.50 

1.80 

1.50 

Duck  Lining  No.  25  

.05* 

.18f 

.21 

.12 

.09 

Sheep  leather  trimmings  .  . 

.05^ 

.091 

.16 

.115 

.092 

Hooks  and  eyelets  

.04£ 

.04^ 

.04| 

.05 

.05 

Bottom    stock,     out-sole, 

welt,  insole,   heel,   box, 

counter,  figuring  No.  1 

heavy  Union  back  

@  .40- 

@  .70- 

©  .90- 

©  .60- 

@  .50- 

.80| 

1.40i 

i.sii 

1.30 

1.20 

Cutting  upper   soles   and 

heels,    fitting,    bottom- 

finishing,  treeing,  dress- 

ing packing 

.60 

.97£ 

1.12 

1.41 

1.41 

.06* 

.06J 

.0825 

.073 

Carton,  box  

.04 

.05| 

.05* 

.055 

.055 

Royalties  

.05| 

Factory  and  general  fac- 

tory labor  expense  

.201 

.21} 

.24 

.285 

.282 

Findings,  laces,  tongues.  .  . 

.121 

.25 

.261 

.26 

.20 

Administrative    and    sell- 

ing expense  

.29 

.45| 

.62| 

.55 

.492 

Discount  and  interest  .... 

.091 

.111 

.241 

.23 

.21 

$3.30 

$6.0475 

$9.35 

$6.2575 

$5.654 

Actual  costs  without  additional  charges  for  taxes  and  profits. 

Courtesy  Boot  and  Shoe  Recorder. 

Ways  of  Evening  up  Production. — The  results  in  evening  up  production 
regardless  of  the  fluctuation  in  sales  have  been  accomplished  in  the  few 
plants  noted  through  the  intensive  study  of  markets  and  sales,  and 
through  the  formulation  of  a  stable  sales  policy  radically  different  from  the 
usual  haphazard  methods.  These  results  have  been  brought  about: 

1.  By  interweaving  the  manufacture  of  staples  and  novelties  so  as  to  make  up  stock 
shoes  in  advance  of  orders.      This  involves  making  up  stock  during  the  dull  season, 
which  requires  an  increased  investment. 

2.  By  working  up  advance  information  and  analyzing  sales  to  avoid  stocking  un- 
salable shoes. 

3.  By  co-operation  between  different  manufacturing  plants  and  other  allied  trades. 

The  company  whose  curve  is  shown  in  Figure  4  owns  through  sub- 
sidiary companies  a  large  number  of  retail  stores  and  this  fact  enables  it 


142  WASTE  IN  INDUSTRY 

to  carry  the  stock  required  and  to  influence  the  sale  of  different  styles. 
Also,  through  foreign  representatives,  advance  information  of  probable 
demands  is  obtained.  Another  concern  (see  Figure  5)  is  accomplishing 
similar  results  through  its  jobbing  houses. 

Still  other  firms  are  accomplishing  results  and  maintaining  uniform 
production  by  confining  themselves  to  fairly  staple  lines  of  women's  or 
men's  or  children's  shoes.  These  shoes  also  reach  the  consumer  at  a  greatly 
reduced  price  because  the  producers  are  able  to  manufacture  at  a  much 
lower  cost  through  the  simplification  of  processes.  The  reduction  in  the 
time  needed  for  running  orders  through  the  shop  also  permits  closer 
co-operation  between  sales  and  production. 

This  brings  up  the  crying  need  for  more  thorough  co-operation.  The 
national  associations  under  effective  leadership  may  aid  this  by  making 
thorough  studies  of  market  demands  in  this  country  and  abroad.  They 
may  study  other  problems  such  as  cooperative  buying  and  standardiza- 
tion of  color  and  finish.  The  field  is  so  vast  that  a  single  firm  has  neither 
time,  money,  nor  personnel  to  solve  the  countless  problems.  During  the 
war  a  beginning  was  made  along  some  of  these  lines  but  the  agreements 
were  discarded  in  the  following  year.  The  general  public,  particularly 
the  women,  also  must  realize  their  share  in  the  demoralization  which 
often  occurs  in  the  shoe  business,  and  the  increase  in  cost  due  to  fickle- 
ness in  choice,  and  must  come  to  view  such  things  not  simply  as  a  choice 
of  style  based  on  casual  tastes,  but  at  least  in  part  from  the  standpoint  of 
usefulness  and  utility  and  economy.  The  excess  cost  of  the  novelty  shoe 
is  a  waste  from  the  standpoint  of  any  actual  advantage  in  wear  or 
durability. 

Effect  of  Rapid  Turnover  in  Retail  Stores. — The  placing  of  orders  by 
the  retailer  has  a  tremendous  effect  on  manufacture.  He  alone  can  aid 
greatly  in  leveling  production  peaks.  One  retailer  in  Bridgeport,  Conn., 
turns  his  stock  ten  times  a  year.  This  rapid  turnover  is  a  gain  to  both 
manufacturer  and  retailer,  for  loss  of  the  latter  in  dead  stock  and  capital 
lying  idle  is  reduced  to  a  minimum. 

The  diagram,  Figure  13,  shows  the  turnover  for  twenty-one  repre- 
sentative retail  stores  (Bridgeport  dealer  noted  above  not  included).  The 
difference  between  the  store  of  this  group  having  the  largest  and  the  one 
having  the  smallest  turnover,  as  shown  in  the  upper  and  lower  curves,  is 
very  marked,  and  indicates  the  savings  that  are  possible  along  these  lines. 

II.  CONTROL  OF  PRODUCTION 

The  shoe  industry  has  progressed  more  slowly  than  most  others  in  the 
last  twenty  years,  except  in  the  development  of  machinery.  The  glaring 
loss  due  to  time  lost  through  internal  irregularities  is  striking,  and  it  is 
allowed  to  continue  as  a  tradition  of  the  business. 


THE  BOOT  AND  SHOE  INDUSTRY 


143 


The  dread  of  overhead  costs,  timidity  in  setting  precedents,  fear  of 
the  labor  unions,  are  the  reasons  for  so  little  progress.  Research  work  is 
practically  unknown,  thorough  analysis  is  lacking,  yet  both  must  be 
employed  to  co-ordinate  the  units  of  an  organization  manufacturing  a 
product  involving  as  many  complexities  as  the  shoe  industry. 

Scarcely  one  manufacturer  in  a  hundred  appreciates  the  actual  money 
losses  due  to  irregular  flow  of  shoes  through  the  different  departments 
and  operations.  Go  through  almost  any  shoe  shop  after  3  o'clock  in  the 


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FIG.  13. — Stock  Turnover  in  a  Group  of  21  Retail  Stores  Show  Average  Turnover, 
and  Turnover  in  the  Two  Stores  Having  the  Highest  and  Lowest  respectively. 

afternoon,  and  you  usually  find  at  any  time  of  the  year  one  or  more  depart- 
ments entirely  shut  down  for  lack  of  shoes.  Go  through  almost  any  shop 
at  any  time  of  the  day  and  you  will  find  some  operators  in  every  depart- 
ment waiting  for  shoes.  Notice  the  diagrams  Figures  14  and  15  which 
show  the  variation  in  weekly  pay  of  the  worker  from  month  to  month, 
showing  a  fluctuation  of  over  200%  between  the  highest  and  lowest 
months,  and  the  proof  of  the  above  statements  is  evident.  In  Figures  16 
and  17  this  variation  is  still  more  convincing! 

Variations  in  production  from  month  to  month,  most  of  which  are 
actually  due  to  irregular  flow  of  work  through  the  plant,  are  illustrated  in 


144 


WASTE  IN  INDUSTRY 


Figures  18,  19,  and  20.  The  variation  that  is  apt  to  occur  in  the  work 
ahead  of  different  operations  in  the  same  department  is  illustrated  in 
Figure  21. 

Effect  of  Complexity  of  Operations.— If  this  waste  from  departmental 
congestion  is  so  evident  and  startling,  why  do  not  the  manufacturers  do 


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FIG.  14. — Diagram   Showing   Weekly  Earnings   in    Relation  to    Number  Employed. 

Irregular  Production  Reflected   in   Irregular  Earnings.  This   Company  Makes 
Men's  Welts  and  Women's  Turns  and  Welts. 


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FIG.  15. — Diagram  Showing  Weekly  Earnings  in  Relation  to  Number  Employed,  Ir- 
regular Production  Reflected  in  Irregular  Earnings.  This  Company  Makes 
Men's  Welts. 

something  to  prevent  it?  Why  do  they  not  get  busy  and  provide  shoes  for 
each  worker  at  all  times?  The  difficulty  of  this  may  be  appreciated  if 
we  consider  for  a  moment  the  complications  of  shoe  making — compli- 
cations, because  of  the  small  sized  lots  put  through,  are  greater  than  in 
almost  any  other  industry.  One  lady's  shoe  may  have  up  to  14  sizes  and 
each  size  may  have  four  widths.  Assuming  only  six  sizes,  this  gives  24 


THE  BOOT  AND  SHOE  INDUSTRY 


145 


different  pairs  of  lasts.     Consider  also  that  there  are  often  as  many  as 
180  operations  on  each  shoe,  and  that  different  styles  running  consecu- 


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FIG.  16. — Diagram  Showing  Loss  in  Production  Due  to  Operators  not  Receiving  Enough 
Shoes  to  Produce  their  Maximum.  This  Company  Manufactures  Men's  and 
Women's  Welts  and  Turns 


FIG.  17. — Diagram  Showing  Loss  in  Production  Due  to  Operators  not  Receiving  Enough 
Shoes  to  Produce  their  Maximum.      This  Factory  Manufactures   Men's  Welts. 

tively  may  require  on  certain  operations  two  or  three  times  longer  than 
the  next  lot. 


146 


WASTE  IN  INDUSTRY 


Fia.  18.  —  Diagram  Showing 
Regular  Departmental  Output 
in  a  Factory  with  Means  of 
Providing  Operators  with  a 
Uniform  Quantity  of  Work 
Each  Week.  Factory  Manu- 
factures Women's  Welts  and 
Turns. 


FIG.  19  — Diagram  Showing 
Irregular  Departmental  Out- 
put in  a  Factory  with- 
out Means  of  Providing 
Operators  with  a  Uniform 
Quantity  of  Work  Each  Week. 
Factory  Manutactures 
Women's  Turn  Shoes. 


FIG.  20. — Diagram  Showing 
Irregular  Departmental  Out- 
put in  a  Factory  which  Has  not 
Developed  a  Means  of  Provid- 
ing Operators  with  a  Uniform 
Quantity  of  Work  Each  Week. 
Factory  Manufactures  Men's 
Welt  Shoes. 


At  the  beginning  of  the  season  new  styles  require  new  specifications, 
proper  stocks  of  upper  leather,  manufacture  of  lasts,  ordering  of  wood 
heels,  developing  stock  of  findings  for  the  particular  styles,  while,  in  the 
shop,  questions  of  new  rates,  of  balancing  the  departments,  of  training 


THE  BOOT  AND  SHOE  INDUSTRY 


147 


the  operatives,  complicate  the  production.  Even  during  the  regular 
season  the  planning  of  orders,  the  treatment  of  lasts,  the  balancing  of  dif- 
ferent lots  and  styles  in  material  and  time,  necessitates  the  complete 
mastery  of  production  and  processing. 

These  .complications  are  so  great  that  few  shoe  manufacturers  have 
attained  even  a  small  degree  of  proficiency.  Only  two  or  three  plants 
in  the  country  have  made  even  an  approach  to  an  intensive  study  of 
proper  manufacturing  technique. 


I  I  I  I  II  I  I  II 

L  5A5  T  UNIFORM  FLOW  OF  WORK 


MOST  UNIFORM  FLOWOFWORK 


SEPT.IT  SEPT.  19  SEPTM  SEPT.^I  SEPT.22  SEPT.23 

FIG.  21. — Diagram  Showing  the  Number  of  Cases  Ahead  of  Two  Operations  in  One 
Department.  The  solid  line  indicates  the  least  uniform  flow  of  work  and  the 
broken  line  the  most  uniform. 

Gains  through  Rapid  Manufacture.  —  Certain  manufacturers  are 
finding  it  possible  to  make  unheard-of  reductions  in  time  of  putting  shoes 
through  the  factory  and  the  old  idea  that  "  good  shoes  must  remain  in  the 
factory  several  weeks  "  is  being  exploded  every  day.  The  relative  time 
in  four  factories  making  similar  men's  welt  shoes  is  shown  in  Figure  22. 
The  time  in  each  department  of  these  four  factories  is: 


Department 

Factory  A 

days 

B 

days 

C 

days 

D 

days 

Order  and  Tag  

4 

3 

1 

2 

Cutting  
Stitching  

51 
4 

5 
4 

2| 
3 

2 
If 

Lasting 

31 

1 

3 

A 

Making 

\i 

3 

3 

1 

Finishing.  . 

li 

1 

1| 

i 

Treeing  and  Shipping 

3 

1 

2 

1 

Total.  

23 

18 

16 

8 

On  nailed  shoes  the  record  has  been  brought  down  to  five  days.  On 
McKay  shoes,  reductions  have  been  made  from  twenty-one  to  fourteen 
days  in  some  plants.  Women's  welts  and  turns  are  more  difficult  to 


148  WASTE  IN  INDUSTRY 

make  up,  but  a  drop  from  thirty  days  to  twenty-two  has  been  made  in 
certain  plants. 

Such  reduction  in  time  in  process  as  this  of  course  must  not  be  expected 
at  the  price  of  quality,  but  speed  by  no  means  implies  reduction  in  quality. 
As  a  matter  of  fact  manufacturers  rarely  have  given  this  subject  intensive 
study  to  see  whether  improvement  is  not  possible  in  their  particular  plants. 

The  really  large  saving  which  is  effected  by  reduction  in  stock  wherever 
it  may  be  is  but  little  appreciated  by  the  manufacturer.  For  example, 
a  plant  turning  out  10,000  pairs  of  shoes  per  day,  assuming  the  value 
of  these  shoes  to  be  $3.50  per  pair,  releases  the  equivalent  of  $525,000 
a  year,  or  $31,500  interest  charges  at  6%.  This  is  full  cost  price  instead 
of  allowing  for  the  fact  that  operations  are  incomplete,  but  the  reckoning  is 
fair  because  no  account  is  taken  of  saving  in  floor  space  and  ease  of  opera- 
tion. With  running  inventories  of  all  stores  and  worked  materials,  it  is 
possible  to  do  away  with  the  cost  of  making  annual  physical  inventories. 

In  Factory  A  there  are  twenty-three  days'  work  on  10,000  pairs,  or 
230,000  pairs  in  process,  against  Factory  D  where  there  are  eight  days' work 
or  80,000  pairs  in  process.  Figuring  $3.50  as  the  average  cost,  the  value  of 
goods  in  process  in  these  two  factories  is  $805,000 and  $280,000  respectively. 
Factory  A  is  carrying  an  inventory  of  $525,000  more  than  Factory  D. 

Reasons  for  Lost  Production. — In  the  following  table  is  a  compilation 
of  detail  records  in  a  department  of  one  of  the  best  run  plants  in  the 
country  showing  the  amount  of,  and  causes  for  lost  time  under  normal 
working  conditions: 

RECORD  OF  NON-PRODUCTIVE  TIME  BY  CAUSES  BASED  ON  STUDY  OF  A  LASTING  ROOM 
MAKING  MEN'S  CHEAP  NAILED  SHOES  or  SIMPLE  PATTERN  AND  ONE  LAST 

Lost  time  due  to 

Variation  in  style 7.2% 

Poor  deliveries 4.5 

Lack  of  machine  parts 3.5 

Poor  control  flow  work 2.8 

Machine  breakdowns 2.6 

Findings 2.4 

Equipment  failure 1.0  24% 

Actual  Productive  Time 76% 

Total  Working  Time 100% 

From  records  of  other  shops,  it  is  found  that  the  average  loss  due  to 
the  causes  enumerated — and  this,  remember,  is  during  running  time  and 
does  not  include  shut-downs — is  between  30  and  35%.  Even  if  we  call 
80%  running  time  the  maximum  readily  attainable,  this  means  a  possible 
increase  of  nearly  20%  in  productive  capacity,  »r(*  9  similar  increase  in 
plant  capacity. 


THE  BOOT  AND  SHOE  INDUSTRY 


149 


How  Management  can  Reduce  Waste. — In  boot  arid  shoe  manu- 
facture, because  of  the  many  styles,  sizes,  and  widths,  the  control  of 
materials  and  of  production  plays  a  most  vital  part.  Such  control 
involves: 

1.  Organization  of  executive  control. 

2.  Planning  and  issuing  of  material. 

3.  Purchase  of  leather. 

4.  Stores  control. 

5.  Buying  and  scheduling  of  lasts. 

6.  Balancing  production  through  the  plant. 

7.  Cost  accounting. 

8.  Responsibilities  of  foreman. 

9.  Plant  construction  and  layout. 
10.  Machinery  control. 


FACTORY  "A" 


FACTORY  "C" 


FACTORY  V 


4&        8        10       \l        14       16        ID       20       «     <-<v 
Days 

Fia.  22. — Diagram  Showing  Variation  in  Length  of  Time  Required  to  Produce  a  Men's 
Goodyear  Welt  Shoe  in  Four  Different  Plants,  Each  Factory  Produces  the  Same 
Grade  of  Shoe.  Note  small  capital  turnover  for  A,  B  and  C  compared  with  D. 

These  factors  are  of  such  importance  from  the  standpoint  of  econo- 
mical shop  management  and  elimination  of  waste,  amounting  well  into 
the  millions  every  year,  that  a  brief  treatment  of  each  topic  must  be 
given. 

1.  Organization  of  Executive  Control. — Of  the  various  plants  examined, 
but  a  few  have  developed  a  chart  of  organization  or  specifically  indicated 
the  duties  of  the  various  executives.     This  results  in  confusion,  lack  of 
responsibility  in  ordering  and    divided   responsibility  in   the  control   of 
production. 

2.  Planning  and  Issuing  of  Material. — The  day  sheet  system  of  con- 
trol is  most  popular  in  the  larger  factories,  and  has  been  developed  in  some 
of  them  to  a  high  degree.    The  plan  originated  with  the  W.  H.  McElwain 
Company  and  is  particularly  adapted  to  the  production  of  shoes  of  com- 
paratively uniform  style.     It  involves  the  making  up  of  a  coupon  sheet 
for  each  lot  put  through  the  factory,  usually  24  or  36  pairs,  the  coupons 
containing  the  major  requirements  invqlved.     A  certain  number  of  sheets 
are  put  in  each  day  and  theoretically  the  lots  for  every  sheet  should 
come  out  in  completed  shoes  at  the  end  of  a  definite  number  of  days, 
regardless  of  the  complications  in  style,  or  the  character  of  material 
worked  on. 


150  WASTE  IN  INDUSTRY 

The  issuing  of  materials  based  on  the  day  sheets  and  specifications 
requires  thorough  knowledge  of  materials  on  hand  and  effective  clerical 
work  in  order  to  avoid  delays  in  the  shop  waiting  for  material. 

3.  Purchase  of  Leather. — Many  a  shoe  manufacturer  makes  or  loses 
a  fortune  through  manipulations  in  leather.  Disregarding  in  our  present 
analysis  the  loss  and  gains  due  to  the  fluctuating  leather  market,  it  is 
more  pertinent  to  call  attention  to  the  greater  need  for  scientific  research 
for  the  predicting  of  kinds  and  qualities  of  leather  required.  Even  in 
many  of  our  largest  plants  the  leather  buyer  purchases  from  judgment 
with  almost  no  advance  estimates  as  to  the  kind,  color  and  quantity  of 
leather  expected  to  be  in  greatest  demand.  A  necessity  for  economical 
manufacture  is  a  careful  planning  out  in  advance  of  the  expectations  for 
sales  so  that  the  buyer  of  leather  may  have  all  possible  information  to 
serve  as  a  guide.  The  sum  involved  is  so  great,  and  the  loss  through 
over-supply,  low  grade  stock  culled  out  from  the  better  grades  remaining 
on  hand,  and  from  other  conditions,  are  so  large  that  thorough  study 
is  necessary. 

4.  Stores  Control — In  but  very  few  plants  are  accurate  balances  of 
stock  kept  of  the  leather  by  grades  to  insure  quantities  which  will 
match  up  with  the  orders.  The  few  shops  which  are  keeping  track  of 
this  are  saving  many  thousands  of  dollars  per  year.  When  it  is  considered 
that  an  inventory  of  a  million  dollars  worth  of  leather  entails  an  interest 
charge,  with  money  at  6%,  of  $60,000  per  year,  it  is  apparent  that  the 
savings  which  have  been  found  possible  by  properly  storing,  grading, 
and  recording  the  stock  are  a  tremendous  item. 

Another  frequent  but  unnoticed  interest  loss  is  due  to  the  purchase  of 
leather,  on  a  stable  or  falling  market,  in  advance  of  requirements.  Some 
of  the  most  advanced  companies  order  their  leather  when  orders  for  shoes 
are  received  even  if  it  is  not  to  be  used  for  two  or  three  months.  This 
means  the  carrying  of  unnecessary  inventory.  The  necessity  for  records 
of  stock  of  other  materials  is  as  imperative  as  for  records  of  leather.  The 
reduction  in  inventory  values  for  eight  different  shoes  factories  of  the 
same  company,  due  to  elimination  of  dead  stock  and  surplus  stock,  is 
shown  in  Figure  23. 

One  of  the  constant  complaints  of  the  foreman  and  the  individual 
worker  is  shortage  of  material.  Special  lacings  have  not  come  in,  eyelets 
of  a  particular  color  are  lacking,  or,  most  often,  the  leather  available  is  not 
of  the  right  shade  or  grade.  These  deficiencies  cause  large  losses  in  pro- 
duction and  delays  to  the  piece-worker.  They  can  only  be  avoided  by 
modern  methods  of  stores  control,  which  as  yet  have  been  introduced  into 
only  a  few  plants. 

Need  for  thorough  stores  control  is  particularly  noticeable  in  large 
concerns  having  several  factories.  With  proper  stores  records,  materials 


THE  BOOT  AND  SHOE  INDUSTRY 


151 


in  individual  factories  are  known  and  the  danger  of  over-stocking,  with 
consequent  interest  losses,  are  largely  avoided.  Stores  records  prevent 
buying  something  for  one  factory  when  it  is  already  on  hand  in  another. 
With  running  inventories  of  all  stores  and  worked  materials,  it  is  possible 
to  do  away  with  annual  physical  inventories. 

It  is  possible,  also,  to  reduce  inventories;  in  one  plant  where  $3,000,000 
worth  of  kid  leather  is  carried  in  stores  it  would  be  possible  to  operate 
the  business  properly  with  only  $1,000,000  worth.  Savings  on  interest 
on  investment  through  this  reduction  would  amount  to  $120,000  per 

•i  INVENTORY  AT  5EGINING  OF  PERIOD 
ED  INVENTORY  AT  END  OF  PERIOD 


0         10        20       30        4-0        50       60        TO 
Hundreds  of  Dollars 

FIG.  23. — Diagram  Showing  Reduction  in  Inventory  Values  in  Storerooms  of  Eight 
Different  Shoe  Factories  Over  a  Six-months'  Period.  Production  remained  prac- 
tically the  same  in  each  plant  during  this  period.  Elimination  of  dead  and  surplus 
stock  accounts  for  the  decrease  in  value. 

year  in  this  one  plant.     Control  insures  having  materials  on  hand  when 
needed  although  maintaining  a  minimum  quantity. 

It  is  easy  to  illustrate  the  actual  losses  in  production  and  therefore 
in  money  through  poor  control.  In  one  case  noted  the  foreman  knew 
six  barrels  of  shanks  were  on  hand.  When  ordered  from  the  store  room, 
however,  it  was  found  that  the  shanks  were  too  small  and  production  on 
shoes  requiring  them  was  delayed  an  entire  month  until  the  proper 
shanks  arrived.  Due  to  shortage  of  lasts;  a  factory  had  20,000  pairs 
of  shoes  in  the  assembly  room  when  2,000  was  the  normal  number.  This, 
in  turn,  was  occasioned  by  lasts  held  up  with  the  shoes  on  them  waiting 
for  certain  findings. 


152  WASTE  IN  INDUSTRY 

One  factory  having  a  capacity  of  2,400  pairs  a  day  could  turn  out  for 
a  considerable  period  only  1,900  pairs,  because  of  shortage  of  racks  due  to 
congestion  on  account  of  the  cobbling  necessary  on  damaged  shoes  of 
a  pointed  last.  Another  factory  had  50,000  pairs  of  shoes  tied  up  in  the 
fitting  room,  instead  of  the  normal  15,000,  because  of  congestion  of  opera- 
tions. In  another  case  a  factory  producing  700  pairs  of  shoes  a  day  had 
36,000  pairs  in  its  fitting  room,  or  ten  times  the  normal  supply,  and  was 
piling  in  more.  Again,  we  find  1,000  pairs  held  up  in  a  fitting  room 
several  weeks  waiting  for  a  certain  style  of  button.  In  one  case,  24,000 
pairs  of  shoes  were  held  up  because  no  rubber  top  lifts  of  proper  size 
were  on  hand.  An  entire  factory  was  held  up  for  several  days  waiting 
for  leather  heels  required  for  12,000  pairs  of  men's  shoes.  Most  frequent 
delays  in  the  packing  room  occur  in  waiting  for  proper  cartons,  embossing 
dies,  brands,  and  shipping  containers. 

These  cases  are  not  exceptional.  Similar  delays  are  occurring  daily 
in  the  large  majority  of  factories. 

The  ordinary  methods  of  issuing  materials  are  no  less  an  evil  than  the 
lack  of  production  control.  In  the  large  majority  of  shoe  factories  sup- 
plies are  dealt  out  to  employees  without  definite  knowledge  of  requirements 
and,  therefore,  with  no  real  check  on  the  disposition  of  quantities 
delivered. 

The  development  of  stores  control  provides  a  mechanism  which  shows 
whether  the  proper  use  has  been  made  of  materials. 

5.  Buying  and  Scheduling  Lasts. — The  buying  of  lasts  is  usually  a 
hit-and-miss  affair,  based  on  estimated  popularity  of  style.  One  shoe 
company  has  made  large  savings  by  getting  together  with  the  last  manu- 
facturer and  arranging  for  delivery  of  lasts  on  orders  placed  the  day  the 
tags  go  into  the  cutting  room. 

This  plan  is  seldom  practicable,  and  in  general  it  is  wise  to  over-buy 
rather  than  under-buy  lasts  because  of  the  large  losses  in  time  and  produc- 
tion occasioned  by  last  turnover.  Manufacturers  have  sometimes  lost 
sales  because  of  cancellation  of  large  orders  of  shoes  of  novelty  design 
through  delay  in  last  turnover. 

It  is  insufficiently  realized  that  turnover  of  lasts  is  not  simply  an  office 
function  of  planning,  but  involves  as  well  the  issue  and  delivery  of 
leather  and  findings  on  schedule  and  the  time  of  flow  through  each 
department. 

In  the  diagram  of  Figure  24  is  shown  the  specified  versus  the  actual 
last  cycle  in  a  well-managed  plant.  The  delay  from  the  specified  time  of 
nine  days  to  the  actual  time  running  up  to  thirteen  days  results  not  sim- 
ply in  longer  time,  but  affects  the  total  production  and  the  work  of  the 
piece-worker. 


THE  BOOT  AND  SHOE  INDUSTRY 


153 


6.  Balancing  Production  through  the  Plant. — With  the  exception  per- 
haps of  seasonal  demand  and  production,  ineffective  methods  of  control 
account  for  the  greatest  losses  in  shoe  production. 

This  fluctuation  has  a  bad  effect  upon  the  morale  of  the  entire  organi- 
zation. The  management  brings  pressure  on  the  superintendents  to  cor- 
rect the  drop  in  production  or  remove  congestion.  The  superintendents 
hammer  the  foremen,  who  in  turn  stir  up  the  employees.  Each  realizes 
the  cause  is  beyond  his  control  and  that  it  is  a  result  of  improper 
management. 

Labor  leaders  have  seized  upon  this  issue  and  point  to  it  as  a  waste 
chargeable  to  management.  These  claims  are  justified  by  analysis  of  the 
underlying  causes. 

Matters  are  left  to  the  foreman  which  should  be  taken  care  of  by 
planning.  He  is  expected  to  chase  up  materials  when  they  should  come 
to  him  automatically. 


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FIG.  24. — Diagram  Showing  Variation  in  Turning  Lasts  in  Turn  Shoe  Factory  (Wood 
Heels)  Covering  a  4-week  Period  for  Two  Different  Lasts. 

It  is  evident  that  a  proper  system  of  control  is  essential  to  maintain 
an  even  flow  of  work  and  insure  deliveries  of  the  right  materials.  The 
sheet  system  ordinarily  used  is  lacking  in  flexibility  for  complicated  proc- 
esses, and  in  many  cases  can  well  be  superseded  by  methods  which  have 
being  successfully  applied  to  other  industries.  In  a  few  factories,  for 
example,  a  modification  of  the  sheet  system  has  been  effected  by  breaking 
up  the  process  into  units  and  treating  the  units  independently. 

The  more  exact  records  kept  in  a  few  shoe  factories,  showing  the 
exact  location  of  work  in  process  and  also  recording  the  time  of  piece-work- 
ers spent  on  productive  work,  as  well  as  the  day  workers,  furnish  a  means 
for  visualizing  the  production  and  eliminating  many  of  the  delays  and 
lost  time. 

7.  Cost  Accounting. — Scarcely  two  factories  have  the  same  method  of 
keeping  costs  and  few  of  them  maintain  sufficient  records  to  give  the 
proper  information  for   assisting   in   production.     There  is   a  need  for 
unification  of  methods. 

8.  Responsibilities  of  Foreman. — All   shortcomings,   delays,  shortages, 
and  low  production  are  laid  on  the  shoulders  of  the  foreman.      He  is 


154  WASTE  IN  INDUSTRY 

accused  of  lack  in  diplomacy  and  tact  in  dealing  with  the  employees,  as 
well  as  of  showing  partiality  and  discrimination  in  distributing  work  to 
them.  He  also  receives  constant  criticisms  on  handling  production. 
Consider  for  a  moment  the  duties  of  the  average  foreman  in  a  shoe  shop: 

To  route  and  plan  work. 

To  maintain  quantity  production. 

To  maintain  quality  production. 

To  employ  workmen. 

To  discipline  workmen. 

To  set  rates. 

To  instruct  workers. 

It  is  physically  impossible  for  any  one  man  to  execute  all  these  duties 
properly.  Often  he  is  paid  a  salary  inadequate  to  stimulate  him  to  do 
his  best.  He  has  not  the  training  for  all  his  varied  duties,  nor  the  time 
to  carry  them  out.  In  one  instance  the  number  of  applicants  for  jobs 
in  one  day  would  have  taken  more  than  the  entire  time  of  the  foreman 
if  he  had  spent  fifteen  minutes  with  each  applicant. 

Along  with  the  proper  development  of  control,  before  the  waste  in  the 
shoe  factory  can  be  eliminated,  must  come  the  further  functionalizing  of 
duties,  the  development  of  planning  departments,  of  rate  setting  depart- 
ments, and  of  inspection  methods  which  have  been  tried  and  proved  in 
other  industries. 

9.  Plant   Construction    and    Layout. — Tests   of  losses  in   production 
through  poor  light  and  arrangement  of  plant  have  shown  surprising 
deficiencies.     The  ordinary  old-fashioned  shoe  shop  is  provided  with  small 
windows,  while  dirt  keeps  out  the  light  which  should  pass  through. 
Individual  electric  lights  are  provided  at  certain  machines,  but  these  may 
be  insufficient  to  insure  first-class  quality  in  work. 

The  layout  of  the  machinery  and  work-benches,  although  usually  of 
less  importance  than  the  methods  of  control,  frequently  plays  an  important 
part  in  economy.  In  one  factory  production  per  hundred  square  feet  of 
manufacturing  space  was  increased  from  6.8  pairs  of  men's  welts  to  12.6 
pairs  per  day  as  a  result  of  radical  changes  in  layout.  In  another  factory 
12.5  pairs  of  nailed  shoes  per  hundred  square  feet  were  increased  to  16.6 
pairs.  Lack  of  storage  space  for  racks,  congested  machinery  and  the 
necessity  for  long  carry  of  shoes  in  process,  reduced  productive  capacity. 

10.  Machinery. — The  high    development  of  shoe    machinery   impels 
the  manufacturer  to  pay  too  little  attention  to  upkeep.    An  example  of 
the  neglect  common  to  most  shops  is  aptly  illustrated  in  a  factory  where 
shoes  were  jamming  at  the  Goodyear  stitchers.     The  union  refused  to 
permit  more  operatives  on  the  line,  because  the  business  agent  found  out 
from  the  men  that  the  machines  were  delivering  but  70%  of  their  capacity, 


THE  BOOT  AND  SHOE  INDUSTRY  155 

because  of  needed  repairs.     As  soon  as  new  parts  were  placed  in  all 
machines,  production  went  back  to  normal. 

III.  WASTE  OF  MATERIAL 

Wastes  involving  material  occur  in  the  grading  of  leather  which  in 
many  plants  is  done  without  definite  standards,  in  the  purchase  of  supplies 
in  excess  of  requirements,  in  the  cutting  of  leather,  and  in  defective  shoes. 

Waste  in  Cutting  Upper  Leather. — One  of  the  enormous  sources  of 
loss  is  the  waste  in  cutting  upper  leather.  Some  factories  work  out 
standard  quantities  for  each  style  with  the  aid  of  measuring  machines, 
while  a  few  others  adopt  what  are  called  the  Krippendorf  standards. 
Other  firms  leave  it  entirely  to  the  cutters  to  economize  in  leather.  Even 
where  standards  are  in  use,  enormous  waste  occurs  through  the  careless- 
ness or  lack  of  training  of  the  cutters.  A  difference  of  at  least  $100  worth 
of  leather  per  week  used  by  two  different  men  for  the  same  styles  and 
same  grades  of  stock  is  not  unusual.  Until  methods  are  adopted  for  con- 
trolling this,  as  well  as  for  interesting  and  training  the  cutter  to  use  mini- 
mum quantities,  the  waste  will  continue. 

Cutters  are  usually  employed  on  a  day-work  basis  with  the  object  of 
keeping  the  waste  of  leather  as  small  as  possible.  With  the  full  develop- 
ment of  standards  obtained  by  careful  analysis  it  is  possible  to  pay  the 
cutters  an  incentive  for  quantity  and  quality  output,  with  a  resulting 
saving  of  at  least  10%. 

Losses  from  Damaged  Shoes. — The  losses  from  damaged  shoes 
average  1|  to  2%  and  run  into  several  millions  of  dollars  yearly,  even  with- 
out considering  customers'  rejects,  the  net  loss  from  which  has  never  been 
satisfactorily  estimated.  The  cost  of  these  must  be  put  into  the  price  of 
shoes.  In  a  small  factory  making  women's  welts  and  turns,  a  $20,000  net 
loss  in  one  year  was  discovered  after  the  books  were  closed.  In  another 
large  company  damaged  factory  product  and  customers'  rejects,  excluding 
cancellations,  cost  the  company  over  $90,000  in  one  month. 

In  addition  to  the  defective  shoes  are  those  damaged  in  process.  An 
ordinary  allowance  for  that  cause  is  25%.  This  does  not  mean  that  this 
quantity  of  shoes  is  thrown  away,  but  that  there  is  some  defect  which  has 
to  be  repaired.  Systems  of  proper  inspection,  or  of  proper  incentive  to 
the  worker  for  doing  good  work,  are  almost  entirely  lacking.  Although 
these  damages  are  of  small  money  value  in  themselves,  the  delays  in  pro- 
duction both  in  quantity  of  output  and  to  the  individual  operative  are 
serious.  In  many  cases  also  the  blemishes  are  covered  up  by  polish  and 
reappear  when  the  shoe  is  worn.  To  show  the  need  of  better  inspection, 
we  may  refer  to  a  case  of  shoes  made  up  of  two  shades  of  tan  leather 
which  had  passed  through  one  hundred  and  sixty-five  operations  and 


156  WASTE  IN  INDUSTRY 

three  central  inspectors  before  being  noticed.      Under  proper  inspection 
control,  this  could  not  have  happened. 

IV.    LABOR  DIFFICULTIES 

Labor  in  Shoe  Making. — Extravagant  claims  are  made  by  certain  shoe 
manufacturers  as  to  restriction  in  output  due  to  union  rules.  Many  of 
these  assertions  are  warranted  but,  on  the  other  hand,  we  find  case  after 
case  of  the  manufacturer  restricting  output  through  failure  to  provide  a 
full  day's  work  or  by  unfair  methods  of  dealing  with  the  worker. 

What  stands  out  before  all  else  in  the  negotiations  and  controversies 
between  the  employer  and  the  operator  is  the  lack  of  knowledge  of  facts 
that  c.m  be  used  as  a  basis  for  the  setting  of  rates. 

Effect  of  Union  Rules. — Certain  rules  of  the  union  result  in  the  stop- 
ping of  work  in  individual  departments  and  the  blocking  of  production  in 
subsequent  departments  due  to  the  holdup  of  the  shoes.  For  example, 
in  some  localities  all  the  workmen  in  any  operation  quit  for  the  remain- 
der of  the  day  provided  they  are  held  up  fifteen  minutes  for  work.  This 
rule  applies  whether  the  delay  occurs  at  9  o'clock  in  the  morning  or  at 
4  o'clock  in  the  afternoon. 

Analyzing  these  rules,  however,  we  find  that  they  tend  in  the  long  run 
to  stabilize  production.  For  example,  if  a  manufacturer  by  9  o'clock  in 
the  morning  cannot  provide  sufficient  orders  for  his  cutters  to  prevent 
their  waiting  for  work,  and  consequently,  as  is  the  rule  in  many  places, 
all  the  cutters  quit  work  for  the  day,  his  routing  methods  are  so  poor 
that  he  should  be  compelled  to  take  steps  to  improve  matters. 

Numerous  cases  indicate  the  necessity  for  union  backing  in  smaller 
shops  where  no  employee  representation  exists.  For  example,  cases  were 
found  where  workmen  in  open  shops  called  attention  of  the  employers 
to  certain  unjust  practices  or  low  rates,  and,  although  their  point  was 
carried,  the  man  acting  as  spokesman  was  discharged  within  the  next 
two  weeks. 

Apprentices. — The  unions  do  not  intend  to  create  a  surplus  of  workers 
in  any  part  of  the  craft.  In  shops  closely  affiliated  with  the  unions,  a 
union  man  before  apprenticing  himself  to  a  job  outside  of  his  own  local, 
must  obtain  permission  through  regular  union  channels  before  he  can  be 
taken  on  by  the  manufacturer. 

Strikes  and  Lockouts. — In  the  East  frequent  newspaper  accounts 
appear  of  strikes  in  Lynn,  Mass.  Whereas  one  strike  in  1917  was  of  a 
serious  nature,  most  of  the  strikes  of  which  the  papers  make  so  much 
account  have  been  in  individual  shops  over  comparatively  small  matters. 
The  1917  strike  and  lockout  lasted  six  months,  affected  18  factories,  and 
threw  4,200  people  out  of  work.  The  case  was  a  dispute  over  a  new 


THE  BOOT  AND  SHOE  INDUSTRY 


157 


wage  agreement.  Figure  25  illustrates  the  unemployment  caused  by  the 
dispute.  One  of  the  manufacturers  involved  stated  that  the  manufac- 
turers were  as  much  to  blame  as  the  unions.  The  relations  of  the  manu- 
facturers to  the  unions  varies  greatly  in  different  localities.  In  some 
cities,  even  where  the  shops  are  highly  organized,  strikes  are  rare.  Cases 
for  adjustment  are  constantly  coming  up,  but  are  usually  settled  without 
strike  on  a  basis  of  compromise.  The  leaders  in  other  sections,  on  the 
other  hand,  take  more  hasty  action,  with  resulting  increase  in  friction. 


FIG.  25. — Diagram  Showing  Number  of  Union  Workers  Unemployed  at  End  of  Each 
Quarter — Boot  and  Shoe  Workers  in  Massachusetts.  Figures  represent  approx- 
imately 50  per  cent  of  all  shoe  workers  in  Massachusetts.  Based  on  union  re- 
turns to  Bureau  of  Statistics. 

Few  Personnel  Departments. — With  perhaps  two  or  three  exceptions, 
shoe  shops  have  no  departments  exercising  modern  personnel  relations 
with  the  employees.  This  gives  the  worker  no  unbiased  means  of 
approach  to  his  employer,  and  the  employer  is  at  a  loss  in  treating  with 
his  own  employees. 

This  important  function  is  commonly  exercised  by  either  the  foremen 
or  superintendents.  Men  occupying  either  of  these  positions  have  not 
as  a  rule  the  proper  training  to  discharge  the  duty  properly. 

To  this  fault  of  the  management  may  be  attributed  in  part  the  cause 
fo  lack  of  knowledge  as  to  labor  turnover,  its  causes  and  effects.  Under 


158 


WASTE  IN  INDUSTRY 


present  conditions  there  is  little  appreciation  of  the  value  of  these  facts, 
and  general  impressions  of  executives  close  to  the  employees  serve  as  a 
basis  for  the  promulgation  of  policies  affecting  labor. 

Shoe  manufacturers  must  develop  employment  or  personnel  depart- 
ments headed  by  trained  specialists  capable  of  dealing  impartially  and  tact- 
fully with  the  employees.  The  department  must  have  accessible  at  all 
times  accurate  and  complete  information  giving  the  status  of  the  labor 
situation  for  any  period  and  create  a  routine  for  reaching  new  employees, 
following  them  up  after  once  employed  and  handle  all  conditions  which 
influences  the  period  of  their  association  with  the  company. 


SKILLED  OPERATIONS  EDwffWg 
Upper  Leather  Cutting 

Outersole  Cutting 
Operating  No.5  Machine 


Edgetrimming 
SEMI-SKILLED  OPERATIONS! 
Sorting  Leather  Remnants  |$  9 

Building  Heels 
Assembling 

UHSKILLEO  OPERATION! 
Sweeper 

Freight  Handler 

CLERICAL 

PayRollClerk(Enterer) 

GROUP  AVERAGES     < 
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AVERAGE  TRAINING  COST 


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115.50 


26.  —  Comparative  Costs  of  Training  Apprentices  in  the  Boot  and  Shoe  Industry. 
(Complied  by  Robert  R.  Haskell.) 


Waste  in  Labor  Turnover. — The  cost  of  training  an  inexperienced 
man  for  cutting  upper  leather  in  a  well-managed  shop  is  $576;  for  a 
semi-experienced  man  is  $450;  and  to  install  an  experienced  man  in  a 
different  shop  costs  $50. 

These  are  facts  brought  out  in  a  very  thorough  analysis  made  in  one 
of  the  large  shoe  plants.  As  this  company  is  exceptionally  well-managed, 
the  figures  given  are  unquestionably  low  for  the  average  shop. 

Few  manufacturers  either  in  the  shoe  or  other  trades  appreciate  tie 
losses  due  to  labor  turnover  and  the  actual  money  that  can  be  saved 
annually  by  preventing  changes  in  the  force.  The  diagram,  Figure  26, 
gives  the  comparative  cost  of  training  apprentices  in  the  shop  referred 


THE  BOOT  AND  SHOE  INDUSTRY 


159 


to.  Figure  27  gives  the  progress  and  time  for  the  apprentices  to  attain 
100%  ability.  The  cost  also  of  hiring  and  training  is  presented  in  detail 
in  Figure  28. 

The  reasons  why  men  left  the  employ  of  another  company  during  a 
representative  month  are  shown  in  Figure  29. 

Working  Hours. — The  hours  of  work  throughout  the  country  vary 
greatly.  In  the  spring  of  1921,  Lynn  and  Haverhill,  Mass.,  were 
running  45  hours  per  week  with  Saturday  as  a  full  holiday;  Brockton, 
Mass.,  was  working  48  hours;  Auburn,  Maine,  54  hours;  Man- 
chester, New  Hampshire,  48  hours;  Brooklyn,  44  hours  with  Saturday 
half  holiday;  Milwaukee,  50  hours;  Chicago,  48  hours;  Rochester,  48 
hours;  Cincinnati,  50  hours;  and  St.  Louis,  48  hours. 


Z.Outersole  Cutter      2.  Build 
J.Ho.5M«hme  Operator  3.  Asse 


10    II      2 

VEARS 


FIG.  27. — Progress  Records  of  Apprentices  of  Average  Ability  on  Ten  Operations  in  the 
Shoe  Factories  of  the  Boot  and  Shoe  Industry.     (Compiled  by  Robert  S.  Haskell ) 

Haphazard  Rate  Setting. — Bartering  between  employers  and  workers, 
either  directly  or  through  association  and  union  business  agent,  is  the 
basis  of  all  wage  agreements,  and  piece-rates.  If  a  new  rate  is  required — 
and  new  rates  must  be  set  with  every  change  in  style  in  the  stitching 
room — the  operatives,  where  unions  are  dealt  with,  make  a  guess  through 
their  agent  of  the  time  required  and  therefore  the  proper  price.  The 
manufacturer  or  the  association  secretary  makes  a  similar  guess  which  is 
always  lower,  in  fact  perhaps  half  the  guess  of  the  operatives.  The  com- 
promise is  based  not  on  facts  but  on  the  selling  ability  of  the  two  parties. 
If  the  rate  is  set  too  high,  it  means  unequal  payments  to  the  workers  or 
else  cutting  of  rates  later  on.  It  is  this  makeshift  policy  that  is  responsible 
for  much  of  the  friction.  The  friction  will  continue  until  methods  are 
adopted  by  which  standards  are  determined  so  that  rates  may  be  set  on  a 
basis  of  facts  instead  of  guess. 

In  cutting  upper  leather,  piece-rates,  if  used  as  generally  operated,  are 
but  little  more  than  a  farce  unless  very  exact  standards  of  areas  for  each 


160 


WASTE  IN  INDUSTRY 


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Operating  No.  5  Machine  .  . 
Edgetrimming  

Average  

Semi-skilled  Operations: 
Sorting  Leather  Remnants.  . 
Building  Heels  
Assembling  

Average  

Unskilled  Operations: 
Sweeper  
Freight  Handler  

Average  

Clerical  Force: 

Pav  Roll  Clerk  (Entered  .  .  . 

8888 

8 

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THE  BOOT  AND  SHOE  INDUSTRY 


161 


style  are  provided.  Even  the  difference  in  hides  is  so  great  that  a  good 
cutter  is  often  unjustly  penalized.  In  practice  the  more  expert  or  more 
fortunate  cutters  slow  up  or  turn  over  their  credits  to  a  neighbor.  On  the 
other  hand,  by  adopting  accurate  standards,  training  the  workmen,  and 
providing  definite  and  adequate  rewards  for  saving  in  leather,  large 
savings  may  be  effected. 

The  feeling  exists  among  manufacturers  that  the  unions  are  opposed  to 
the  use  of  the  stop  watch.  The  union  men  state,  however,  that  they  are 
not  opposed  to  its  use  but  only  to  its  abuse  in  speeding  up  production 
instead  of  determining  facts  as  to  the  time  and  best  method. 


More  Money      mi 
Dissatisfied      14 
Miscellaneous    •} 

PERSONAL=105 

Unsatisfactory  work 
Layed  Off 
IrregularAttendance 
.  Disobedience 
Passirg  Damaged  Shoes 
Tardy 

•  9 
•  2 

•  Z 

"5           DISCHARGES  =  157 

leaving  Town           ^mmzi, 
Too  Far  from  Home      «6 

LOCALITY*  29 

Stay  at  Home    __  - 
Married          12 
School            *s 
Help  Out         ..- 
Vacation         1  1 

UNCOHTROLLABLE=I65 

FIG.  29. — Diagram  Showing  Causes  for  Exits  for  Representative  Month  from  One  Shoe 
Factory .    Average  Number  of  Employees  =  5 100 .     Total  Exits  =  411. 

The  lack  of  knowledge  of  what  a  man  should  do  results  in  payments 
not  in  proportion  to  skill  and  effort  but  in  accordance  with  precedent. 
Skilled  jobs  requiring  months  of  training  earn  $40  per  week.  Other 
jobs  requiring  maybe  three  days'  training  for  the  operator,  earn  $35 
per  week. 

Disadvantage  of  Uniform  Piece  Rates. — One  of  the  worst  features  of 
these  rate-setting  agreements  is  the  fact  that  factories  in  a  certain 
locality  providing  good  conditions  and  plenty  of  work,  both  through  the 
day  and  through  the  year  pay  the  same  piece-rates  as  are  paid  in  the  most 
poorly  run  factory  in  the  district.  The  manufacturer,  therefore,  has 
comparatively  little  incentive  to  provide  constant  work  for  his  employees, 
unless  he  appreciates  fully  the  saving  through  decreased  overhead  and 
increased  production.  The  unions  often  demand  the  entire  benefits  of 
improvements. 


162  WASTE  IN  INDUSTRY 

The  practice  of  setting  a  rate  for  each  operation  to  apply  to  all  facto- 
ries in  a  given  locality  is  entirely  wrong.  A  thorough  study  of  the  same 
operation  as  performed  in  the  different  factories  in  the  same  locality  will 
prove  they  are  unlike.  It  may  be  the  same  in  principle,  but  not  in  detail. 
There  is  a  difference  in  product,  in  materials,  equipment,  methods,  or 
personnel.  Each  has  a  bearing  on  the  output  and  should  be  considered 
when  determining  the  output  which  can  reasonably  be  expected  of  a 
workman.  Frequently  the  wage  scale  is  governed  by  the  strength  of  the 
union  rather  than  by  the  skill  required  in  the  various  classes  of  work. 

Progressive  manufacturers  who  appreciate  this  defer  taking  the 
steps  toward  standardization,  feeling  that  the  unions  will  disapprove  such 
a  movement.  Much  time  must  be  spent  educating  the  union  leaders  and 
the  workmen  to  a  point  of  view  that  will  appreciate  these  principles. 

In  one  case,  for  example,  a  new  method  for  cutting  sock  linings  in- 
creased production  threefold.  The  work  of  the  employees  was  lightened 
at  the  same  time,  yet  the  piece-rates  remained  the  same  as  before. 

Accurate  Rates  from  Job  Analysis. — One  or  two  factories  in  the  country 
have  proved  the  practicability  of  fixing  accurate  rates  by  the  determina- 
tion of  rates  based  on  time  study.  Even  in  these  plants,  however,  the 
plan  has  not  been  carried  far  enough  to  get  the  results  that  have  been 
attained  in  certain  other  industries  and  that  are  possible  here  so  as  to 
permit  the  setting  of  new  rates  on  a  basis  of  unit  operations. 


BASIS    FOR    SETTLING    LABOR   DISPUTES 

Labor  Disputes  Must  be  Settled  by  Fact  Arguments. — Success 
depends  upon  faith,  goodwill,  and  co-operation.  These  things  can  never 
be  attained,  however,  until,  along  with  the  best  of  intentions,  shop  con- 
ditions and  shop  methods  are  adjusted  by  keen  analyses  of  causes  and 
remedies,  until  the  present  haphazard  rate  setting  is  replaced  by  methods 
based  on  fact  knowledge. 

The  big  factor  behind  labor  disputes  is  the  attempt  of  the  worker 
to  secure  a  wage  that  will  make  up  for  the  irregularity  of  work  through 
the  day  and  through  the  year.  Management  shares  the  blame  with  labor 
for  the  disagreements  and  the  strikes  and  lockouts  that  occur.  When 
the  employer  and  the  worker  realize,  as  they  are  doing  in  a  number  of 
the  most  successful  plants,  that  the  success  of  each  depends  upon  faith 
in  the  other,  and  when  along  with  this  and  of  vital  importance  comes 
the  realization  of  both  that  most  differences  can  be  settled  by  determination 
of  fact  and  the  establishing  of  standard  methods  in  production  so  as  to 
prevent  the  causes  of  friction,  most  of  our  labor  difficulties  in  the  shoe 
shop  will  disappear.  And  with  these  same  developments  will  come  about 


THE  BOOT  AND  SHOE  INDUSTRY  163 

the  elimination  of  a  large  portion  of  the  waste  now  existing  in  the  boot  and 
shoe  industry. 

Accident  Prevention. — The  cost  of  accidents  from  the  return  of  the 
National  Council  of  Workmen's  Compensation  Insurance  shows  a  com- 
paratively small  loss  for  the  boot  and  shoe  industry,  the  accident  cost 
being  36c.  per  $100  of  the  pay  roll.  Even  this,  however,  is  appreciable 
and  through  "  safety  first  "  work  reductions  in  lost  time  in  two  different 
factories  have  amounted  to  about  18%. 

EFFECT  OF  WASTE  ELIMINATION  ON  THE  COST  OF  SHOES 

The  waste  of  time  through  the  year  due  to  seasonal  demand  and  the 
daily  losses  of  time  through  unbalanced  production  of  departments  and 
processes,  make  the  cost  of  labor  on  a  pair  of  shoes  almost  double  the  pos- 
sible minimum.  With  an  output  valued  at  some  $1,300,000,000, 
this  loss  of  labor  alone,  even  assuming  that  only  25%  is  wasted  time, 
amounts  (since  the  labor  cost  is  about  20%  of  the  shoe  cost)  to  $65,000,000 
a  year. 

Manufacturers  as  yet  are  making  but  little  effort  to  remedy  the  unsat- 
isfactory conditions  of  employment  because  they  do  not  realize  the  bearing 
on  their  costs  and  profits.  The  manufacturer  says:  "  This  lost  time  does 
not  cost  anything.  The  operators  are  on  piece-work  and  simply  lose 
their  own  time."  But  the  fact  is  that  not  only  must  irregular  work  be 
paid  for  by  higher  piece-rates  to  maintain  a  fair  annual  income  for  the 
operator,  but  the  effect  of  this  idle  time  on  the  actual  cost  is  surprising. 

In  the  following  paragraphs  are  pointed  out  the  reduction  in  price  that 
is  shown  to  be  possible  by  the  actual  results  in  a  few  of  the  best  shops. 
The  effect  of  standardization  is  not  considered  because,  although  of  great 
benefit,  actual  data  are  lacking  from  which  to  give  definite  figures.  The 
reductions  in  cost  are  based  on : 

1.  Overcoming  seasonal  fluctuations. 

2.  Overcoming  internal  congestion. 

3.  Saving  material. 

From  the  combined  result  is  shown  the  comparative  prices  of  the  fin- 
ished shoe. 

Analysis  of  Cost. — Statistics  of  earnings  of  industrial  workers  in  this 
country,  as  well  as  cost  values,  are  inadequate  and  inexact.  However, 
it  has  been  possible  by  balancing  various  sources  of  information  and 
checking  these  with  the  records  of  the  shops  subjected  to  special  study 
to  arrive  at  definite  figures.  The  average  annual  income  of  boot  and  shoe 
workers  we  find  to  be  $1250.  This  income  is  earned  in  approximately 
thirty-four  full  weeks  of  productive  effort.  The  manufacturing  cost  of 


164 


WASTE  IN  INDUSTRY 


the  average  shoe  in  the  early  part  of  1921  was  approximately  $3.50  per 
pair.  This  figure  includes  cost  for  shoes  ranging  from  the  smallest  baby 
shoe  to  the  fanciest  shoe  for  women,  as  well  as  from  the  cheapest  man's 
nailed  to  the  finest  woman's  turned.  Analyzing  the  cost  of  a  shoe  we 
find  the  division  of  material,  labor,  and  expense  to  be  as  follows: 


Material  
Labor 

$2.10 
70 

60% 

20% 

Overhead  

.70 

20% 

Total  Cost  

$3.50 

100% 

Result  from  Overcoming  Seasonal  Fluctuation. — Presuming  for  the 
present  an  annual  income  of  $1250  to  be  earned  by  the  average  shoe 
worker  in  forty-five  weeks  of  productive  effort  instead  of  the  present 
average  of  thirty-four  weeks,  since  shoe  workers  think  in  terms  of  annual 
income  the  labor  cost  would  be  reduced  in  inverse  proportion.1  Since 
the  annual  overhead  remains  the  same,  the  overhead  per  pair  would  be 
reduced  in  like  measure.  Assuming  the  same  cost  of  material,  the  result 
in  cost  with  this  32%  increased  production  would  be: 


Material  
Labor  

$2.10 
.53 

66% 

17% 

Overhead  

.53 

17% 

Total  Cost  

$3.16 

100% 

This  is  equivalent,  by  reducing  the  idle  time  through  the  year,  to  a 
reduction  of  about  25%  in  the  cost  of  labor  and  in  overhead  with  a 
reduction  in  the  total  cost  of  the  shoe  of  10%. 

Results  from  Overcoming  Internal  Congestion. — But  we  have  still 
another  loss  from  idleness,  the  loss  of  the  operative,  occasioned  chiefly 
by  waiting  for  work  and  material — a  loss  shown  by  our  factory  studies 
to  amount  to  another  35%  of  the  time.  This  can  be  eliminated  to  a  great 
extent  by  accurate  methods  of  planning  and  controlling  the  work.  The 
manufacturer  can  at  least  reduce  this  cost  by  20%,  in  addition  to  the 
increase  in  annual  working  time,  since  this  actually  has  been  done  in  certain 
factories. 

Results  of  the  increased  output  over  and  above  the  saving  already 
figured  would  then  be  reflected  by  a  20%  reduction  in  the  cost  of  labor  and 
of  overhead  as  follows: 


1  In  practice,  through  additional  gains,  the  earnings  per  year  would  be  increased 
also. 


THE    BOOT  AND  SHOE  INDUSTRY 


165 


Material  
Labor  

$2.10 
.44 

71% 
14.5% 

Overhead  

.44 

14.5% 

Total  Cost  .  .  . 

$2  98 

100% 

Results  from  Saving  Material. — But  it  is  unfair  to  assume  no  reduction 
in  the  cost  of  material.  Examination  made  in  the  tanning  industry  in 
connection  with  this  report  shows  large  possibilities  for  reduction  in  cost 
of  upper  leather,  but  even  disregarding  these  and  considering  only  the 
possible  saving  within  the  shop  due  to  improved  methods  of  grading, 
more  expert  cutting  and  fewer  defective  shoes  which  have  been  discussed 
in  the  report,  we  would  have  a  reduction  in  material  cost  of  at  least  10%. 
Taking  this  into  consideration,  we  have : 


Material  
Labor...           

$1.89 
44 

68% 
16% 

Overhead  

.44 

16% 

Total  Cost  

$2.77 

100% 

Total  Reduction  in  Manufacturing  Costs. — The  net  savings  which 
may  be  obtained  is  $0.73  per  pair  of  shoes  or  a  reduction  of  21%.  Accord- 
ingly, since  selling  prices  in  general  vary  with  manufacturing  costs,  shoes 
which  are  now  purchased  from  the  retailer  for  $15  could  be  had  for 
$11.85,  or  a  saving  of  $3.15  per  pair.  Shoes  now  sold  for  $10  would 
sell  at  $7.90,  or  a  reduction  of  $2.10  per  pair. 

Conclusion. — Summarizing  these  facts,  the  greatest  needs  in  the  shoe 
industry  are: 

1.  More  uniform  distribution  of  work  throughout  the  year,  which  can  be  effected 
by  co-ordination  of  sales  and  production. 

2.  Adjustment  of  methods  of  planning  and  production  to  the  multiple  processes 
involved  in  shoe  manufacture. 

3.  Co-operation  of  the  manufacturers  and  the  workers  in  development  of  the  best- 
working  methods  and  piece  rates  through  the  determination  of  facts  and  analyses  of 
operations. 

4.  Development  of  more  intimate  relations  between  the  worker  and  the  management 
through  the  employment  or  personnel  function. 

5.  Strengthening  the  other  weak  places  which  have  been  noted  in  this  report. 

The  Field  Report  Evaluation  Sheets. — In  the  studies  for  this  report 
17  boot  and  shoe  factories  have  been  personally  visited  and  detail  facts 
as  outlined  in  the  questionnaire  have  been  obtained  from  8  of  these. 


166 


WASTE  IN  INDUSTRY 


FIELD    REPORT  EVALUATION 

COMMITTEE    ON      ELIMINATION    OF    WASTE   IN    INDUSTRY 
AMER   CAN     ENGINEERING     COUNCIL 
OF 

INDUSTRY  BoofaridShoe      PLANT  NO.  5                          E5T.  ^Thompson  a  lichtner  Co.            DATE  4//S/2/ 

>    ©H-(D  +  ®-@  Excellent  -0%Woste       p0or  =  60%Waste                  a  -t-b-t-c-d  =IOO°/O 
S    ®4®  +  ®-®Fafr         38,:          Bad=S07o.,                       e  +  f  +g-  h  -    %  Waste 

CAUSES 

Guide 

RESPONSIBILITIES 

TOTAL  WASTE 

for 

MANAGEMENT 

LA  B  O  R 

OUTSIDE     CONT    ACTS 

Assigned 
Points 

Points 
Waste 

Field 
nvesti- 

Assigned 
Points 

Est.°|o 
Waste 

Points 
Waste 

Assignee 
Points 

Est.o/o 
Waste 

Points 
Waste 

Assigned 

Points 

Est.% 

Waste 

Points 
Waste 

gator 

J  

2 

5 

4 

5 

.6    = 

7 

8 

9 

10 

II 

:  !2  .. 

13 

14 

Kl 

BJ 

100 

0.5 

.  0.5 

O.S 

C 

<2 

1.0 

100 

1.0 

1.0 

1.0 

s 

K3 

0.5 

100 

0.5 

0.5 

0.5 

S   o- 

K4 

0.5 

100 

0.5 

0.5 

0.5 

|| 

K5 

0.5 

50 

075 

0.5 

O.J5 

II 

K6 

0.5 

15 

031 

0.5 

O.VT 

f| 

K7 

0.5 

100 

0.5 

0.5 

0.5 

$& 

KS 

8.0 

15 

6.0 

4.0 

100 

4.0 

It.O 

10.0. 

fc  "S 

K9 

<U 

100 

0.5 

0.5 

0.5 

z  §-§ 

KIO 

3.0 

50 

1.5 

3.0 

.0 

0&-? 

Kit 

1.0 

100 

10 

1.0 

1.0 

KI2 

1.0 

100 

1.0 

1.0 

100 

1.0 

1.0 

100 

10 

3.0 

30 

^5  -a 

KB 

?.o 

100 

?.o 

?.o 

100 

2.0 

2.0 

100 

2.0 

6.0 

6.0 

<-t  § 

KI4 

o.rc 

0-25 

0.11 

0-5 

Nr-  1 

KI5 

0.15 

O.Z5 

0.5 

z  S.£ 

KI6 

1.0 

100 

1.0 

1.0 

7.0 

1-0 

*^ 

KI7 

J.O 

7.0 

4fl 

^•8   ° 

16 

2.0 

7.0 

4-0 

K3   1 

19 

1.0 

100 

1.0 

1.0 

1.0 

o  Pi 

K2O 

0« 

0.25 

0.5 

11 

21 

0.5 

100 

0.5 

0.5 

0.5 

IS 

-1 

c  "£ 

1  i 

-5  -^ 

r  3 

TOTAL 

26.62. 

18.12 

8.15 

3.0 

1.IJ 

T.O 

d|  42.50 

6  28.12 

Tl 

025 

0.15 

0.5 

O^"5 

T2 

1.0 

10 

T3 

2.5 

100 

2.SO 

2.5 

2.5 

"s  "a 

T4 

O.S 

0.5 

c   ^ 

T5 

1.5 

T6 

0.5 

0.5 

s1! 

T7 

2.0 

2.0 

100 

2.0 

40 

20 

&  § 

.E  = 

fS 

^"  35   £ 

£    ^Q 

58 

TOTAL 

8.ZS 

2.50 

0.0 

0.0 

2.25 

2.0 

b|io.so 

fJ4.50 

1  I 

1  ZATI  0  N 

cal  Knowledge  and  Organization, 
Accounting  Factors 

U2 

1.0 

50 

3-5  > 

TO 

35 

U3 

?.o 

100 

?  0 

2.0 

2.0 

100 

100 

10.0 

10-0 

10.0 

U5 

5.0 

190 

5.0 

5.0 

&.0 

6 

0.5 

100 

0.5 

os 

0.5 

7 

?0 

2.0 

a 

30 

3.0 

U9 

2.0 

100 

2.0 

?.o 

2  0 

10 

1-0 

100 

1.0 

1.0 

ro 

LO 

1  0 

100 

1.0 

1.0 

12 

65 

100 

6.5 

6.5 

65 

13 

0.5 

50 

0.5 

0-25 

IIM 

0.5 

0.5 

IS 

9Z5 

50 

0.13 

O.J5 

50 

O.IJ 

0.5 

0.25 

16 

50 

1  Zb 

75 

UTI  I 

Effectiveness  of  Techn 
Direction,  Control  and 

17 

1-0 

UI8 

0.0 

0.0 

TOTAL 

45.15 

33.11 

1.0 

0.0 

0.25 

0.12 

c  ••' 

9  35.Z.1. 

GRAND  TOTAL 

80.62 

51.15 

9.15 

•5.0 

9.63 

9.IZ 

d  100 

h  65.51 

THE  BOOT  AND  SHOE  INDUSTRY 


167 


FIELD    REPORT  EVALUATION 

COMMITTEE    ON     ELIMINATON    OF    WASTE  IN    INDUSTRY 
AMER   CAN    ENGINEERING     COUNCIL 
OF 
THE     FEDERATED    AMERICAN      ENGINEERING    SOC   ETIES 

INDUSTRY  Boo+andShoe        PLANT  NO.  4                            E5T.  BY  Thompson  a  tichtner  Co.            DATE  <*/«/*/ 

>.    ©+®+®=  ©Excellent  -0°/o  Waste       Poor  =  60%Waste                   a  »  b  +  c  -d  -100% 
S    ®+®+®-®6F2?rd        I?,/*"-         Bad-  80%,,                      e  ,  f  *  g  .  h  .    °/o  Waste 

CAUSES 

Guide 

RESPONSIBILITIES 

TOTAL  WASTE 

for 

LABOR 

Assigned 
Points 

Points 
Waste 

Est.°|o 
Waste 

Points 
Waste 

» 

ESt°/o 
Waste 

Points 

Est.0/o 
Waste 

Points 
Waste 

nvesti- 

'oints 

Waste 

Points 

gator 

1 

Z 

3 

7 

8 

to 

II 

13 

14 

f. 

Kj 

0.5 

100 

O.S 

0-5 

0.5 

C 

KZ 

1  0 

0.5 

1.0 

0.5 

0 

0^ 

100 

0.5 

0.5 

Ij- 

K4 

0.5 

so 

0.25 

0.5 

O.M 

11 

K5 

50 

0.25 

0.5 

0.25 

1-2 

50 

0.25 

0.5 

K7 

05 

10 

0.05 

.0.5 

0.05 

i  (2 

80 

4-.0 

4.0 

100 

2.0 

8.0 

fc  -g 

K9 

0.5 

100 

0.5 

0.5 

z  frl 

3.0 

SO 

I.S 

i.O 

1.5 

0^-? 

Kll 

(Q 

100 

10 

1.0 

12 

1.0 

100 

to 

1.0 

100 

1.0 

1.0 

100 

10 

3.0 

15 

J.O 

50 

1.0 

2.0 

50 

1.0 

7.0 

50 

i.O 

1.0 

<l  1 

14 

O.ft 

100 

0.13 

0.25 

100 

0.25 

0.12 

100 

0.12 

0.5 

KI5 

0.25 

0.2S 

z  |£ 

1.0 

1.0 

|7 

7.0 

2.0 

<£  £ 

18 

4.0 

100 

4.0 

4.0 

£  S  IT 

KI9 

50 

0.60 

0.5 

oil 

KiO 

0.5 

50 

0.25 

0.5 

0.25 

°  3  * 

Ktl 

0.5 

100 

0.5 

0.5 

0.5 

1  ? 

-  § 

v!  <t> 

c  £ 

•S'i1 

s  < 

TOTAL 

24.88 

12.68 

10.50 

6-25 

l.rt 

6.12' 

a[  +2.50 

e|js.05 

yi 

0.25 

0.25 

0.5 

8^  a 

T2 

1-0 

50 

0.5 

O.S 

•s  « 

TJ 

2.S 

so 

1.25 

y_ 

1.25 

_j   |    a 

T4 

O.S 

0.5 

<3i 

T5 

1.5 

50 

0.15 

.5 

O.TS 

uii 

0.5 

0.5 

TECH  N  1 

Available  Engineerm 
as  to  Product,  PI  ant 

T7 

4.0 

25 

1.0 

4.0 

1.0 

TOTAL 

10.25 

3.50 

0.0 

0.0 

0.25 

0.0 

b|  10.50 

f|3,0 

1  ON 

ledge  and  Organization, 
ng  Factors 

Ul 

.0 

1.0 

U2 

TO 

50 

3.5 

TO 

3.5 

U3 

7.0 

100 

7.5 

2.0 

2.S 

U4 

10.0 

90 

9.0 

10.0 

9.0 

U5 

5.0 

50 

2.5 

5.0 

2.5 

U6 

OS 

100 

0.5 

0.5 

0.5 

'U7 

?.o 

50 

1.0 

2.0 

10 

8 

I.S 

100 

1.5 

I.S 

lOOi 

1.5 

3.0 

30 

9 

SO 

1.0 

2.0 

10 

?.o 

50 

i.O 

?.8 

1.0 

H 

1  0 

1.0 

UI2 

6.5 

10 

0.65 

65 

0.6S 

UT  1  LI  Z  AT 

Effectiveness  of  Technical  Know 
Direction,  Control  and  Account 

5 

o.s 

50 

0.25 

0.5 

O.Z5 

.114 

0.5 

10 

0.05 

0.5 

0.05 

UI5 

0.35 

0.15 

O.S 

UI6 

?.5 

50 

1.25 

2.5 

U5 

U17 

1.0 

50 

0.5 

1.0 

O.S 

UI8 

0.0 

0.0 

TOTAL 

45.3  5 

25.20 

1.5 

1.5 

|    0-15 

0.0 

c  c.o? 

ys 

GRAND  TOTAL 

SO  if, 

4I.J8 

12.0 

7.15 

1.52 

6,2 

d    KXJ 

h|5,25 

168 


WASTE  IN  INDUSTRY 


FIELD    REPORT  EVALUATION 

COMMITTEE    ON     ELIMINATION    OF    WASTE  IN    INDUSTRY 
AMERICAN    ENGINEERING     COUNCIL 

or 

INDUSTRY  dootandShoe    PLANT  NO.  3                       ISI.WrhompsonetLichtnerCo.       OATEf/'s/V 

>    ®+(D-H(D-@  Excellent.  O'roWasts       Poor  .  60%Waste                   a  *  b  +c  -d  -100% 
"    ®  +  ®+®-®Fai>r          '.40%"»          Bad  =80%    ..                       e  +  f»g.h-    •/«  Waste 

CAUSES 

Guide 

Questions 

RESPONSIBILITIES 

TOTAL  WASTE 

M 

ANAGEM  EN 

T 

LABOR 

OUTSIDE     CONT    ACTS 

ss 

Points 
Waste 

Fied 
Investi- 
gator 

Assigned 
Points 

Est.°/0 
Waste 

Points 
Waste 

Points 

Est.°/0 
Waste 

Points 
Waste 

Points 

Est.-te 
Waste 

Points 
Waste 

ORGAN  IZATION 

Mechanism  of  Industry  as  to  Type.Methods  (Paper  Work)and  Personnel, 
Assignmentand  Discharge  of  Responsibility  and  Relationship 

0.5 

100 

0.5 

as 

0.5 

y 

1.0 

50 

05 

LO 

0.5 

K3 

0.5 

100 

0.5. 

OJ 

0.5 

K4 

O.S 

50 

0.25 

05 

O.t5 

KS 

as 

50 

0.25 

0.5 

0.25 

K6 

os 

50 

035 

05 

0.15 

7 

as 

50 

0.2S 

as 

0.25 

8 

8.0 

25 

?.o 

4.0 

100 

4.0 

12.0 

G.O 

9 

0.5 

50 

0.25 

0.5 

0.15 

10 

J.O 

J.O 

1-0 

100 

10 

1.0 

1.0 

g 

1.0 

25 

azs 

1.0 

25 

0.25 

1.0 

25 

-us 

3.0 

0.15 

13 

2.5 

T5 

L88 

Z5 

IS 

1.81 

1.0 

50 

.55 

6.0 

4.25 

14 

0.11 

100 

0.12 

0.15 

100 

0.15 

OR 

100 

O.i?. 

0.5 

0.5 

KIS 

OK 

0.25 

0.5 

KI6 

10 

_u 

?.o 

KI7 

2.0 

50 

10 

2.0 

50 

1.0 

to 

2.0 

KIS 

2.0 

50 

1.0 

J.O 

50 

1.0 

40 

2.0 

KI9 

1.0 

25 

0.25 

1.0 

015 

KZO 

0.5 

0.5 

*.?! 

0.5 

0.5 

TOTAL 

21.37 

10.25 

9.00 

4.17 

6.13 

4.88 

042.5 

e  law 

TECHNICAL 

Available  Engineering  Knowledge 
as  to  Product,  Plant  and  Materials 

Tl 

0.25 

0.15 

0.5 

T2 

1.0 

10 

0.10 

.0 

0.10 

T3 

2.5 

10 

0.15 

2.5 

0.25 

T4- 

0.5 

0.5 

TS 

1.5 

L5 

T6 

0.5 

0.5 

T7 

?.o 

25 

0.25 

2.0 

100 

7.0 

4.0 

2.25 

TOTAL 

8.15 

0.60 

0.0 

0.0 

2.25 

2.0 

b   '.0.5 

f    ?.60 

.1 
5 

Ul 

1.0 

.0 

yz 

1.0 

IS 

1.15 

7.0 

1.15 

us 

1.0 

100 

1.0 

1.0 

100 

1.0 

2.0 

2.0 

U4 

7.0 

50 

3.5 

3.0 

100 

J.O 

10.0 

6.5 

US 

4.0 

10 

0.4 

1.0 

10 

0.1 

5.0 

0.5 

1  ON 

ledge  and  Organ 
ng  Factors 

U6 

0.5 

O.S 

' 

1.0 

2.0 

6 

?.o 

100 

2.0 

1.0 

100 

1.0 

3.0 

yo 

U  1 

1.0 

50 

0.5 

1.0 

100 

1.0 

?.o 

1.5 

10 

1.0 

50 

0.5 

to 

100 

10 

2.0 

1.5 

1 

1.0 

1.0 

2 

63 

6.5 

Tl  LIZ  AT 

echnical  Know 
and  Accou'nti 

3 

0.5 

0.5 

4 

0.5 

0.5 

5 

OiS 

0.15 

0.5 

6 

2.5 

10 

0.25 

?.S 

O.Z5 

7 

1.0 

10 

010 

1.0 

0.10 

18 

0.0 

0.0 

U 

Effectiveness  of  1 
Direction,  Control 

TOTAL 

J8.B5 

10.00 

8.00 

7.10 

0.15 

0.00 

C  4T.O 

gn.M 

GRAND  TOTAL 

14.41 

20.85 

11.00 

II.  *1 

8.53 

6.88 

d  100 

h  W-M 

THE  BOOT  AND  SHOE  INDUSTRY 


169 


FIELD    REPORT  EVALUATION 

COMMIT! 
THE    FEC 

IE   ON     ELIMINATION    OF    WASTE  IN    INDUSTR 
AMERICAN     ENGINEERING     COUNCIL 
OF 

Y 

INDUSTRY  Boot  and  Shoe       PLANT  NO.  2                          V5S.&17hompson*LtchtnerCo.          DAT  £*//#?' 

>.    0  +  ®  +  <D  =  @  Excellent  =0°fo  Waste       Poor  =  60%  Waste                   a  +  b  +  c  =d  =100% 
*    ®  +  ®-Kg>  =  ®F2ird        :4&".          Bad  =80%»                      e  +  f+g  =  h=      '^Waste 

10 

Guide 
Questions 

R  E 

.SPONSIBILIT 

E5 

TOTAL  WASTE 

Field 

Investi- 

Assigned 
Points 

Est»/o 
Waste 

Points 
Woste 

Sp 

E5t.0j0 
Waste 

Points 
Waste 

Assigned 
Points 

Est.% 
Waste 

Points 
Waste 

Assigned 
Points 

Points 
Wtaste 

£  |~ 

ll 

Kl 

0.5 

0.5 

Kg 

) 

1.0 

K3 

O.S 

10 

.05 

0.5 

O.OS 

K4 

0,5 

100 

0.5 

0.5 

0.5 

0.5 

0.5 

K6 

OJ 

0.5 

ORGAN  IZATION 

idustry  as  to  Type,  Methods  (Paper  WorK 
d  Discharge  of  Responsibility  and  Relat 

K7 

0.5 

0.5 

KB 

25 

?.o 

4.0 

50 

2.0 

2.0 

u 

K9 

(  4 

O.I 

10 

0.01 

0.5 

o.oi 

KIO 

.0 

J.O 

Kll 

0 

10 

O.I 

1.0 

O.I 

Kie 

.0 

10 

O.I 

1.0 

25 

O.Z5 

l-O 

10 

O.I 

3.0 

0.45 

KIS 

0 

20 

0.6 

?.o 

ZO 

0.4 

1.0 

10 

0.1 

u 

I.I 

12 

OZ5 

0.13 

0.5 

KI5 

O.Z5 

O.Z5 

0.5 

1.0 

10 

O.I 

1.0 

10 

O.I 

2-0 

0,1 

KIT 

?.o 

2.0 

4.0 

Klfl 

2.0 

?.o 

4.0 

KI9 

1.0 

1.0 

025 

O.Z5 

50 

O.IZ 

0.5 

O.It 

K2I 

0.75 

0.25 

as 

Mechanism  of  1 
Assignment  an 

TOTAL 

mi 

3.45 

9.10 

0.88 

6.13 

7.20 

0  42.5 

e  (.53 

TECH  N  ICAL 

Available  Engineering  Knowledge 
as  to  Product,  Plant  and  Materials 

Tl 

0.75 

0.25 

0.5 

T2 

1.0 

70 

0.1 

.0 

O.I 

T3 

2.5 

7.5 

T4 

0.5 

0.5 

TS 

1.5 

1.5 

T6 

0.5 

0.5 

T7 

?.o 

•20 

0.4 

2.0 

20 

0.4 

4.0 

0.8 

TOTAL 

8.Z5 

o.e 

0.0 

0.0 

2.75 

0.4 

b]l0.5 

f   1.0 

UTILIZATION 

Effectiveness  'of  Technical  Knowledge  and  Organization, 
Direction,  Control  and  Accounting  Factors 

Ul 

1.0 

1.0 

Ut 

TO 

to 

0,1 

TO 

O.T 

U3 

?.o 

100 

L2 

2.0 

2.0 

U4 

10.0 

10 

1.0 

10.0 

.0 

U5 

5.0 

10 

05 

5.0 

0.5 

U6 

0.5 

0.5 

UT 

7.0 

10 

0.2 

7.0 

0.2 

US 

3.0 

100 

1.0 

3.0 

3.0 

U9 

1.0 

20 

0.1 

1.0 

70 

0.7 

7.0 

0.4 

UIO 

Z.O 

10 

0.1 

2.0 

0.2 

Ull 

1.0 

.0 

UIZ 

6.5 

6.5 

UI3 

0.5 

0.5 

UI4 

0.5 

10 

0,05 

0.5 

0.05 

UI5 

035 

0.15 

0.5 

yie 

7.5 

10 

0.25 

?.5 

0.25 

UI7 

1.0 

10 

0.1 

1.0 

O.iO 

yi8 

0.0 

0.0 

TOTAL 

45.85 

8.10 

1.0 

0.20 

0.15 

0.00 

C  41.0 

98.40 

GRAND  TOTAL 

8  .IT 

12.25 

10.10 

1.08 

8." 

7.60 

d  100 

h  15.93 

170 


WASTE  IN  INDUSTRY 


FIELD     R  EPORT   EVALUATION 

COMMIT! 
THE    FEC 

3UNCIL 
RING    SOCIETIES 

OF 
ERATED    AMERICAN     ENGINEE 

INDUSTRY  dootand  Shoe    PLANT  NO.  /                         EST.  BY  Thompson  a  Li'chtner  Co.          DATE  4/is/z/ 

>    ®  +  ©+®-®  Excellent-  0 
ui                                        Good        -2( 

'o  Waste     Poor    -60%  Waste                      en-  b  t  c=  d  -100% 
?/a\\        Bad     =80%     »                        «+  f  <-  g-  h  =  %  Waste 

*    ®  "*" 

to 

<0 

§ 

Gu  de 

RESPONSIBiLI  T 

ES 

TOTAL  WASTE 

for 

MANAGEMENT 

LABOR 

Assigned 
Points 

Points 
Waste 

Issioned 

Est 

7o 
te 

Points 
Waste 

Assigned 

Points 

Est.°/o 
Waste 

Points 
Waste 

& 

Est.  % 
Waste 

Points 
Waste 

nvesti- 

Points 

Wa 

gator 

z 

3 

ORGANIZATION 

Mechanism  of  Industry  as  to  Type,  Methods(PaperWork)and  Personnel, 
Assignmentand  Discharge  of  Rensobility  and  Relationship 

0.5 

0.5 

1.0 

1.0 

0.5 

O.S- 

0.5 

0.5 

03 

0.5 

0.5 

0.5 

0.5 

05 

8.0 

10 

1.2 

4.0 

50 

2.0 

120 

£} 

0.5 

0.5 

3.0 

3.0 

1.0 

.0 

1.0 

10 

(tt 

1  C 

10 

0.1 

1-0 

10 

O.I 

5-0 

0.4 

3.0 

V  C 

20 

0.4 

1.0 

10 

O.I 

60 

0-5 

O.It 

o.ts 

gjs 

O.S 

0.25 

0.15 

100 

O.t5 

0.5 

O.Z5 

1.0 

1.0 

100 

1.0 

to 

1.0 

?.o 

25 

0.25 

7.0 

50 

1.0 

40 

1.15 

?.o 

?.o 

50 

1.0 

4.0 

.0 

CI9 

1.0 

1.0 

K20 

O.Z5 

O.Z5 

100 

0.15 

0.5 

015 

K2I 

0.5 

0.5 

TOTAL 

77.62 

1.65 

8.15 

4.00 

6.11 

:  r. 

a  4-  •: 

•  |l,5 

tl 

T 

0.25 

0.15 

0.5 

1-0 

1.0 

J.5 

?.s 

<il 

o  wi 

0.16 

0.15 

'.; 

I.S 

0.5 

TECHNI 

Available  Engineerir 
astoProduct,Plantan 

J.O 

10 

0.1 

1.0 

10 

O.I 

4-0 

0.4 

TOTAL 

9-r. 

0.1 

ens 

0.00 

I.M 

0.10 

b  -' 

f    0.40 

UTI  LIZAT1  ON 

Technical  Knowledge  and  Organization, 
and  Accounting  Factors 

U  1 

1.0 

1-0 

1  2 

7.0 

10 

0.7 

0 

O.T 

U3 

?.o 

so 

1.0 

0 

.0 

I  4 

10.0 

10 

U) 

1  0 

1.0 

U5 

5.0 

10 

0.5 

0 

O.S 

1  6 

0.5 

(.5 

U7 

7.0 

50 

1.0 

.0 

•0 

U8 

J.O 

.0 

U9 

Z.O 

0 

UIO 

?.o 

2.0 

U  1 

1.0 

!  0 

im 

G-5 

6-5 

i  3 

0.5 

O.S 

UI4 

0.5 

0.5 

U15 

0.15 

10 

0.05 

a  is 

OS 

0.05 

UI6 

?.5 

1.5 

J17 

10 

I.) 

UI8 

0.0 

0.0 

Effectiveness  of 
Direct!  on,  Contro 

TOTAL 

46.85 

4.15 

0.00 

0  C  C 

0.15 

o.oo 

C  4-  0 

g4.« 

GRAND  TOTAL 

83.4T 

£.10 

.9.00 

4.00 

7.51 

?.10 

djioo 

h  12  50 

THE  BOOT  AND  SHOE  INDUSTRY 


171 


FIELD    REPORT   EVALUATION 

COMMITTEE    ON     ELIMINATON    OF   WASTE      N     INDUSTRY 
AMERCAN     ENGINEERING     COUNCIL 
OF 
THE     FEDERATED    AMERICAN    ENGINEERING    SOC  ETIES 

INDUSTRY  BootandShoe  PLANT  NO.  Q                          EST.  BY  Thompson  *Lichtner  Co.   DATE  4//£/ar 

>   ©  +  ©  +  ®-@  Excellent-  0°!o  Waste      p^   =60%Waste                      q+  b  +  c  =d  -  100°lo 

s  ®+®+®-®  ?2?rd    'Joo!:  ;;    ^  =8010  „           e^f  +g^  °i°^ 

<n 
<j 

Guide 

RESPONSIBILITIES 

TOTAL  WASTE 

r 

Points 
Waste 

Field 

Investi- 

Assigned 

raws 

Est.°lo 
Waste 

Points 
Waste 

feint? 

Est.°lo 
Waste 

Points 
Waste 

w 

Est.°lo 
Waste 

Points 
Waste 

Points 

gator 

i 

2 

5 

6 

T  1  O  N 

ds(PaperWork)and  Personnel, 
lity  and  Relationship 

Kt 

0.5 

0.5 

K2 

1.0 

1.0 

K3 

0 

?5 

0.12 

0.12 

K4 

05 

25 

O.U 

O.U 

K5 

0 

KG. 

C5 

K1 

0 

25 

o.re 

0.12 

K8 

8.0 

25 

3.0 

4.0 

100 

4.0 

1.00 

K9 

0.5 

KIO 

3.) 

KM 

.0 

KB 

t.O 

10 

O.I 

1.0 

0.2 

0.2 

1.0 

SO 

0.5 

0.8 

0  R  G  A  N  1  1  A 

Mechanism  of  Industry  as  to  TypEjMethc 
Assignment  and  Discharge  of  Responsib 

HI'S 

0 

2.0 

1.0 

50 

0.5 

0.5 

KI4 

0 

0.25 

0.12 

KIS 

.25 

n0.25 

HIS 

.0 

100 

2,0 

2.0 

Kn 

0 

2.0 

K18 

0 

2.0 

KI9 

1.0 

100 

1.0 

.0 

K20 

0.5 

0.5 

50 

0.15 

0.25 

TOTAL 

28.88 

6.12 

T50 

0.20 

6.12 

5.00 

a|«.so 

e|,,.92 

TECHNICAL 

Available  Engineering  Knowledge 
as  to  Product,  Plantand  Materials 

"1 

0.25 

0.25 

).5 

T2 

.0 

1.0 

3 

2.5 

2.5 

0.5 

X5 

5 

.5 

1.5 

T6 

0.5 

0.5 

7 

?.o 

?.0 

50 

1.0 

4.0 

1.0 

TOTAL 

8.25 

0.00 

0.00 

0.00 

2.25 

1.00 

b,   -,<;c 

r|uoo 

r  i  o  N 

wledge  and  Organ'i?ation. 
ng  Factors 

Jl 

25 

0.25 

07S 

U2 

TO 

50 

3.5 

10 

3.5 

U3 

V.O 

100 

2.0 

2.0 

U* 

10.0 

25 

2.5 

2  S 

U5 

5.0 

25 

1.25 

5.0 

I.Z5 

1J& 

0.5 

25 

C.li 

0.5 

0.13 

in 

2.0 

I  8 

100 

3.0 

3  0 

J9 

.0 

25 

0.5 

2.0 

).50 

I  10 

.0 

1.0 

Ull 

0 

25 

0.25 

.0 

0.25 

UB 

.5 

25 

1.62 

6-5 

1-62 

Tl  LI  T  A  1 

Technical  Kno 
1  and  Account 

UI5 

0.5 

100 

0.5 

0.5 

0.50 

Ul» 

0X5 

0.25 

0.5 

0.5 

25 

0.13 

0.5 

0.13 

JIG 

2.5 

50 

1.25 

?.5 

125 

1.0 

.0 

U18 

0.0 

0.0 

U 

Effectiveness  of 
Direct!  on,  Contro 

TOTAL 

45.15 

16.88 

1.00 

o.oo 

0.25 

0.00 

C  41.0 

3  16.88 

GRAND  TOTAL 

82.88 

23.60 

8.50 

cuo 

8.62 

6.00 

d  100 

h  29.80 

172 


WASTE  IN  INDUSTRY 


FIELD    REPORT   EVALUATION 

SOCIETIES 

OF 

THE    FEDERATED    AMERICAN    ENGINEERIMS 

INDUSTRY  BoofandJher      PLANT  NO.  7                             tt.Wrhompson  *  Lichtner  Co.             DAJ14//4/2I 

£  ©* 

©  *  (D  -  ®  Excellent  -0°loWaste           R>or~  60°loWaste                   o  +  b  +  C  -  d-IOO°lo 
(g)  +  ©  ,  ®  F°°r         I«£  £            &ad  -  8°0|°    "                      e  +  f  i-g  .  h  -   "loWaste 

CAUSES 

6ude 

RESPONSIBILITIES 

TOTAL  WASTE 

for 

LABOR 

OUT 

,IOE  CONT     A 

CTS 

Pointy 

Points 
Waste 

Field 
Investi- 

—  |  

Wa 

ste 

1  —  5  — 

Waste 

BBS? 
—5  — 

Was 
—  g  

te 

Waste 

l!e 

Points 
Waste 

a    % 

Ki 

as 

100 

o.s 

0.5 

K3 

l.O 

100 

1.0 

l.O 

K3 

O.S 

KJO 

0.5 

as 

O.S 

0.5 

OS 

05 

O.S 

0.5 

too 

05 

O.S 

0.5 

K4 

0.5 

ICO 

0.5 

05 

T  10  N 

idsCPaperWork 
lity  and  Relat 

K1 

50 

0.25 

0.25 

K8 

8.0 

100 

8.0 

4.0 

100 

-:  -j 

12.0 

12.0 

K9 

0£ 

50 

0.25 

0.5 

0.25 

KIO 

3.0 

50 

i.S 

3.0 

5 

K  1 

l.O 

50 

0.5 

G 

0.5 

1.0 

100 

1.0 

l.O 

50 

l.O 

50 

0.5 

30 

2.0 

Mechanism  of  Industry  astoType,Methc 
Assignment  and  Discharge  of  Responsib 

3.0 

100 

3.0 

100 

J.O 

l.O 

100 

l.O 

60 

6X) 

(14 

0.15 

(US 

0.12 

05 

(15 

0.2S 

0.25 

0.5 

IS 

l.O 

100 

10 

l.O 

2.0 

1.0 

(11 

20 

?.o 

40 

L8 

2.0 

4.0 

l.O 

100 

l.O 

l.O 

l.O 

(20 

O.S 

100 

0.5 

0.5 

0.5 

7 

05 

100 

05 

05 

0.5 

TOTAL 

nee 

21.00 

8.50 

2.SO 

6.IZ 

5.50 

Q  42.50 

e  'j  ' 

TECHNICAL 

Available  Engineering  Knowledge 
asto  ProduCt,Plantand  Materials 

I! 

0.25 

0.25 

0.5 

T2 

.0 

T3 

2.5 

100 

2.5 

2.5 

2.5 

"4 

O.S 

0.5 

T5 

1.5 

1.5 

T6 

0.5 

0.5 

T7 

2.0 

2.0 

50 

l.O 

4.0 

l.O 

TOTAL 

8.25 

2.50 

0.00 

0.00 

2.25 

1.00 

b|  0.50 

f    3.50 

L  A  T  1  0  N 

Knowledge  andOrganuurion. 
junting  Factors 

VJI 

l.O 

100 

l.O 

l.O 

l.O 

u? 

"70 

100 

1.0 

T.O 

70 

U3 

2.0 

100 

2.0 

2.0 

2.0 

U4 

10.0 

100 

10.0 

100 

10.0 

US 

50 

50 

2.5 

5.0 

u 

U6 

0.5 

50 

0.25 

0.5 

0.25 

2.0 

100 

2.0 

2.0 

20 

g 

30 

100 

3.0 

3.0 

3.0 

9 

2.0 

100 

2.0 

2.0 

2.0 

l.O 

l.O 

1 

l.O 

100 

1.0 

.0 

.0 

12 

6.5 

100 

6.5 

G  5 

S.S 

13 

0.5 

100 

O.S 

0.5 

0.5 

14- 

0.5 

25 

0.12 

05 

0.12 

U  T  1  L  1  • 

Effectiveness  of  Technica 
Direction,  Control  and  Ace 

0.25 

50 

OJi 

025 

50 

0.12 

0.5 

0.25 

16 

2.5 

25 

0.63 

n 

1.0 

l.O 

U>8 

0.0 

0.0 

TOTAL 

45.15 

38.63 

i.oo 

o.oo 

0.25 

"  '.? 

C  47.00 

9k* 

GRAND  TOTAL 

81.88 

62.13 

g.so 

?.50 

8.61 

6.62 

d  100.0 

h|,,,5 

THE  BOOT  AND  SHOE  INDUSTRY 


173 


FIELD     R  ERORT  EVALUATION 

OF 

tNDUSTRYficc?<7n<y>5A0f      PLANT  NO.  8                             EST.  ZIThompson  bLichtnerCo.             OATE-*//V?' 

>-    ©  +  (D  *  (D  -  ®  Excellent  -Olo  Waste       Poor    ,60°loWaste                       a+b+C-d-  I00°/o 
*    ®  ^  (D  -  ®  -  ®  W°          3*b  "          BQd     "8°^°  "                         e  ^  -3  -  h  -    °lo  Waste 

hi 

Guide. 
Question 
for 
Field 
Investi- 

R 

ESPONSIBILIT! 

.  s 

TOTAL 

WASTE 

Assigned 

Points 

Est.°lo 
Waste 

Po'mts 
Waste 

Assigned 
Po'mts 

Est.°lo 
Waste 

Points 
Waste 

Assigned 
Points 

Est.°lo 
Waste 

Points 
Was-re 

Assigned 
Points 

Points 
Waste 

A,  T  1  0  N 

hodslPaper  Work)  and  Personnel, 
bility  and  Relationship 

0.5 

K2 

i.O 

50 

0.5 

.0 

0.5 

K5 

0.5 

100 

0.5 

0.5 

0.5 

K4 

05 

IS 

0.37 

0.5 

0.37 

K5 

0.5 

90 

0.45 

05 

K6 

0.5 

50 

o.ts 

0.5 

0.25 

0.5 

25 

0.5 

K8 

8-0 

4.0 

100 

4.0 

12.0 

4  0 

K9 

0.5 

50 

0.25 

0.5 

0.25 

KIO 

:  o 

3.0 

.0 

KI2 

.0 

100 

I.O 

I.O 

100 

I.O 

I.O 

100 

I.O 

3.0 

3-0 

H  3 

100 

3-0 

20 

100 

2.0 

I.O 

100 

I.O 

6.0 

6.0 

0  R  G  A  N  1  I 

Mechanism  of  Industry  astoType,  Met 
Assignment  and  Discharge  of  Respons 

Kl4 

0-1} 

0.!5 

0.12 

0.5 

KJ5 

025 

0.25 

.5 

KI6 

Q 

20 

0.4 

.0 

0.4 

K17 

o 

2.0 

.0 

K18 

0 

2.0 

.0 

K>9 

0 

100 

1-0 

-0 

I.O 

K?o 

(5 

K21 

5 

05 

TOTAL 

26.88 

7.85 

7.50 

J.OO 

6.11 

L6.0 

Q  42.5 

6  16.85 

EC  HN  1  C  A  L 

e  Engineering  Knowledge 
duct,Plantand  Materials 

Ti 

0.25 

0.25 

0.5 

T? 

1.0 

50 

0.5 

.0 

0-5 

T3 

2.5 

2.5 

T4- 

0.5 

0.5 

T5 

1.5 

.5 

T6 

0.5 

0.5 

TT 

5.0 

2.0 

50 

I.O 

4.0 

I.O 

i-  Ji 

'11 

TOTAL 

8.25 

0.50 

0.00 

0.00 

l.tb 

1.00 

bjjO.50 

f|-.so 

C 

.2 

V, 

I.O 

.0 

u 

'.0 

y 

2.0 

!00 

2.0 

2.0 

2.0 

u 

10.0 

25 

2.5 

10.) 

?.S 

u 

5.0 

25 

1.25 

5.0 

1.25 

g 

0.5 

100 

0.5 

0.5 

0.5 

0 
O    0)    ° 

u 

2.0 

u 

3.0 

100 

3.0 

30 

3.0 

U9 

I.O 

100 

I.O 

I.O 

100 

I.O 

2.0 

2.0 

UIO 

.0 

I.O 

2.0 

Ul 

.0 

I.O 

Ul? 

6.5 

25 

1.62 

65 

1.62 

UI3 

0.5 

0.5 

^    3 

UH 

0.5 

°  y 

UI5 

0.25 

0.15 

O.S 

uie 

?.S 

25 

06} 

?.5 

061 

"*  -5  "e 

l  n 

I.O 

.0 

j__    ^      ° 

UI8 

0.0 

0.0 

n  °  £ 

>n   C 

£(3 

f  g" 

'•^  -f 

TOTAL 

44.15 

12.50 

2.00 

1.00 

0.25 

0-00 

C  41.0 

g    13.50 

GRAND  TOTAL 

8-88 

20.85 

9.50 

4.00 

8.62 

7.00 

d  100 

h   31.85 

174  WASTE  IN  INDUSTRY 

To  cover  certain  specific  points  25  other  factories  have  been  interviewed 
by  correspondence.  These  factories  were  located  in  the  following  states: 
Massachusetts,  Maine,  New  Hampshire,  New  York,  Pennsylvania, 
Missouri,  Ohio,  Michigan,  Illinois,  Wisconsin,  Kentucky,  and  Virginia. 


ACKNOWLEDGMENT 

Appreciation  is  extended  to  the  various  shoe  manufacturers  who  have 
so  cordially  opened  their  records  and  tabulated  the  data  requested. 
Also  officials  of  various  labor  unions,  manufacturers'  associations,  and 
many  individual  workmen  have  rendered  important  aid  in  our  assay. 
The  wholesalers'  associations  and  retailers'  associations,  both  local  and 
national,  have  furnished  information  of  value.  The  trade  papers,  The 
Bool  and  Shoe  Recorder,  the  Weekly  Bulletin  of  Leather  and  Shoe  News, 
The  Cutler  Publications,  and  American  Shoe  Making  all  contributed 
reliable  and  helpful  data. 

For  the  detail  work  of  the  investigation,  appreciation  is  expressed  to 
our  engineers,  Mr.  H.  E.  K.  Thompson  in  conducting  the  major  part  of 
the  inquiry  and  to  Mr.  Edward  H.  Hansen  for  his  examination  of  certain 
shops.  Mr.  Richard  B.  Lewis,  Jr.,  has  assisted  us  greatly  in  the  analyses 
and  preparation  of  the  diagrams.  The  studies  on  labor  turnover  made 
by  Mr.  Robert  R.  Haskell  form  one  of  the  most  valuable  studies  ever 
made  on  this  subject  in  any  industry,  and  have  provided  material  for  three 
charts  given  in  this  survey. 

SANFORD  E.   THOMPSON. 


THE  PRINTING  INDUSTRY 


175 


tn  5  'IV^rlll-^c^ 

£§  |'-fe"c  3,    '  •  e  o  C  CD      I 

.°-M^  1 1  3  £  ol  IJ'S+r.a  c      I 

ts-a^  -  —  |  l-g  E^1  u.|  pt'-^^  ' 

iff  fjlll  HMti 


00 

*:§ 


U-lP_ 

oz 


o: 
oc  a. 


CHAPTER  VIII 

THE  PRINTING  INDUSTRY 

BY  JOHN  H.  WILLIAMS 

INTRODUCTION 

The  Industry. — Printing  represents  a  total  investment  of  approxi- 
mately a  billion  and  a  half  dollars,  and  according  to  the  1919  census  has 
an  annual  production  of  over  three  billions.  These  figures  are  based  upon 
the  inclusion  of  such  dependent  industries  as  printing  machinery,  printing 
ink,  type  founding,  and  the  two-thirds  of  the  paper  industry  making  paper 
for  printing. 

The  printing  industry  in  the  narrower  sense  may  be  divided  into 
newspaper,  periodical  and  book,  and  job  printing  concerns,  representing 
about  90%  of  the  whole;  and  music  printing,  book  binding,  lithographing, 
engraving  and  plate  printing  concerns  which  make  up  the  other  10%. 
About  one-quarter  of  these  printing  concerns  are  located  in  New  York 
City;  Illinois  and  Pennsylvania  together  represent  another  quarter,  so 
that  practically  half  of  the  printing  work  of  the  country  centers  about 
its  three  largest  cities. 

Unavoidable  Waste. — Broadly  speaking,  all  production  industry 
may  be  divided  into  three  major  classes: 

1.  Continuous  Process,  such  as  flour,  textile  and  paper  milling,  where  production  is 
largely  dependent  on  a  machine,  its  supply  and  tending. 

2.  Repetitive,  where  the  same  operation  with  minor  variations  is  done  over  and  over 
again,  as  in  the  shoe  and  men's  clothing  industries,  and  the  making  of  articles  like  boxes, 
bolts,  nuts  and  buttons. 

3.  Job,  where  the  work  is  custom  made,  so  to  speak,  as  in  the  building  trades  and 
printing  industry. 

These  three  classes  are  not  hard  and  fast,  but  as  a  rule  it  is  not  difficult 
to  determine  the  preponderating  element  in  any  given  industry.  The 
printing  business  apart  from  the  printing  of  large  magazines  and  news- 
papers is  essentially  "  job  "  business,  and  in  this  fact  lies,  to  a  large  extent, 
the  cause  of  certain  elements  of  waste  which  may  be  regarded  as  impractical 
of  elimination. 

The  limitless,  yet  essential  variation  in  product  usually  makes  it 
desirable  and  often  necessary  that  the  customer  shall  be  in  close  contact 

176 


THE  PRINTING  INDUSTRY  177 

with  the  printer  throughout  the  entire  period  of  production.  The  average 
page  of  text  contains  from  one  to  two  thousand  separate  characters, 
differing  on  each  page.  In  display  work,  the  number  of  characters 
decreases,  but  the  variations  in  face  of  type,  style  and  spacing  so  increase 
as  to  complicate,  rather  than  simplify  the  process.  In  addition  to  a 
limitless  variety  in  sizes,  shapes,  color,  tone  of  paper  and  ink,  and  their 
possible  combinations,  there  are  the  varieties  in  paper  stock  and  finish 
and  styles  of  binding.  Almost  every  one  of  these  variables  is  apparent 
to,  and  usually  prescribed  by  the  customer,  and  more  often  than  not, 
is  changed  during  the  progress  of  the  work.  The  advantage  to  the 
customer  of  being  in  personal  contact  with  the  printer  has  had  a  marked 
tendency  to  keep  down  the  size  and  increase  the  number  of  printing 
plants.  (See  Figure  1.)  The  1914  census  shows  that  57%  of  the  industry 
is  individually  owned,  and  produces  one-third  of  the  total  product. 

This  in  turn  has  tended  toward  one  of  two  evils:  either  intense 
competition  among  small  concerns  not  informed  as  to  their  own  costs,  or 
the  cost-plus  basis  of  business.  It  is  hard  to  say  which  is  the  greater  evil. 

The  necessity  for  prompt  conversion  of  news  and  information  into 
printed  form  to  make  it  commercially  valuable,  and  the  resultant  com- 
petition in  service  and  price  occasions  over-equipment.  This  is  accom- 
panied either  by  unavoidable  waste  in  maintaining  an  otherwise  unnec- 
essarily large  force  of  labor,  or  else  irregular  employment.  (See  Figure  2.) 
The  United  Typothetae  of  America,  the  national  trade  organization,  by 
actual  survey  throughout  the  country  estimates  the  over-equipment  at 
from  50  to  150%,  representing  hundreds  of  millions  of  dollars  in  idle  equip- 
ment, to  say  nothing  of  annual  rent,  and  other  overhead  charges.  A 
fluctuation  of  50%  in  the  number  of  employees  at  different  seasons  of 
the  year  is  not  unusual  in  the  larger  plants  doing  mail  order  catalogues  and 
railroad  work.  The  fact  that  the  job  printer  always  works  to  order,  and 
has  no  opportunity  to  fill  in  his  dull  periods  by  producing  for  stock, 
materially  complicates  matters,  and  virtually  lifts  him  out  of  the  class  of 
manufacturers  in  the  ordinary  acceptation  of  the  word. 

Scope  and  Limitations. — The  investigation  has  been  limited  to  book, 
job  and  periodical  printing,  eliminating  the  large  metropolitan  daily, 
on  account  of  the  influence  of  their  policy  and  distribution  on  the  problem 
of  waste. 

Intensive  studies  have  been  made  of  seven  concerns  doing  a  general 
class  of  work,  and  a  volume  of  business  of  $100,000  per  annum,  or  over. 
Less  intensive  studies  have  been  made  of  a  large  number  of  concerns  of 
all  kinds  and  sizes.  Information  and  advice  have  been  received  from  the 
leading  trades  associations  and  from  innumerable  individuals.  The 
findings  will  be  limited  to  the  larger  plants  because  the  smaller  are  so 
dependent  upon  the  capacity  of  the  individual  owner  that  they  are  not 


178 


WASTE  IN  INDUSTRY 


adapted  to  assay  and  comparison.     While  an  effort  has  been  made  to 
cover  the  field  geographically,  the  principal  investigations  have  been 

PREPONDEHANCE  OF  SMALL  PLANTS  IN  PRINTING  INDUSTRY  AS  COMPARED  WITH 
STEEL  INDUSTRY  EMPLOYING  EVEN  A  LESS  NUMBER  OF  PERSONS 

Printing  and  Publishing  (Including  Newspapers  and  Periodicals) 


ESTABLISHMENTS 

EMPLOYEES 

Size,  Number  of 

Employees 

Number 

Per  Cent 

Number 

Per  Cent 

No  wage  earners      ... 

8  524 

25.46 

1-5 

17,456 

52.15 

40,665 

14.94 

6-20 

5,081 

15.18 

53,694 

19.73 

21-50 

1,500 

4.49 

47,285 

17.37 

51-100 

499 

1.50 

35,067 

12.89 

101-250 

311 

0.93 

47,650 

17.52 

251-500 

71 

0.21 

23,909 

8.79 

501-1,000 

25 

0.07 

16,939 

6.23 

Over  1,000 

4 

0.01 

6,883 

2.53 

Total  

33,471 

100. 

272,092 

100. 

U.  S.  Census  of  Manufactures,  1914,  vol.  2,  page  636,  Table  22. 
Steel  and  Rolling  Mills 


ESTABLISHMENTS 

EMPLOYEES 

Size,  Number  of 
Employees 

Number 

Per  Cent 

Number 

Per  Cent 

1-5 

3 

0.70 

8 

0.03 

6-20                               16 

3.74 

196 

0.08 

21-50 

30 

7.02 

1,119 

0.45 

51-100 

46 

10.78 

3,629 

1  45 

101-250 

92 

21.54 

15,414 

6.19 

251-500 

94 

22.02 

33,921 

13.63 

501-1,000 

87 

20.38 

61,185 

24.60 

Over  1,000 

59 

13.82 

133,244 

53.57 

Total   .                   

427 

100. 

248,716 

100. 

U.  S.  Census  of  Manufactures,  1914,  vol.  2,  page  224,  Table  43. 

FIG.  1 

in  New  York  and  Chicago,  which  together  do  almost  half  of  the  total  print- 
ing of  the  United  States. 


THE  PRINTING  INDUSTRY 


179 


There  has  been  no  effort  to  make  the  report  all  inclusive  of  the  industry, 
or  of  the  possible  elimination  of  waste,  but  rather  to  determine  and  deal 
with  the  evils  that  lie  at  the  root  of  waste.  Waste  through  strikes,  lock- 
outs and  lay-offs  is  not  dealt  with  as  such,  because  available  records  are 
inadequate.  Moreover,  the  industry  is  at  the  moment  in  the  throes  of 
adjustment  after  war  conditions,  and  until  this  situation  is  cleared  up,  no 
opinion  on  the  subject  would  be  valid. 

Conscious  Technique  of  Management. — As  bearing  upon  the  causes  of 
waste,  the  Committee  as  a  whole  compiled  a  questionnaire  for  the  purpose 


280 
260 
240 
220 

r 

u  180 
<y 
c- 
}?  160 


feO 


35^ 


/\ 


\ 


\ 


\ 


->         u-         S         < 


>-         o         Bl         H 

»     3     »     S 


FIG.  2. — Fluctuation  in  Employment  in  Different  Departments  of  the  Same  Estab- 
lishment. 


of  developing  the  degree  of  conscious  technique  on  the  part  of  the  man- 
agement. The  findings  on  the  basis  of  this  questionnaire  are  given,  as 
indicating  a  more  or  less  academic  assay  from  an  engineering  viewpoint 
of  potentiality  for  waste  within  the  six  plants  in  which  intensive  studies 
were  made.  They  should  not  be  confused  with  the  actual  waste  and 
causes  of  waste  as  given  for  the  investigation  as  a  whole  from  a  practical 
operating  standpoint. 

The  causes  and  responsibilities  for  waste  in  an  ideal  or  100%  efficient 
plant  are  shown,  as  compared  with  those  found  by  means  of  the  question- 
naire in  the  six  plants  in  which  intensive  investigations  were  made. 


180  WASTE  IN  INDUSTRY 

The  responsibilities  are  given  under  the  same  three  headings  as  will 
be  used  for  the  findings  from  a  practical  operating  standpoint,  for  the 
industry  as  a  whole.  They  are  as  follows: 

I.  Management  of  Individual  Plants. 
II.  Management  of  Industry  as  a  Whole. 
III.  Labor. 

As  compared  with  an  ideal  plant,  the  six  plants  investigated  were 
guilty  of  an  average  waste  of  57.8  points.  Of  this  total,  the  management  of 
the  individual  plant  was  responsible  for  18.1  points  or  over  ^  of  all,  the 
management  of  industry  as  a  whole  for  23.4  points  or  over  •&  of  all,  and 
labor  for  16.3  points,  or  nearly  ^  of  all.  As  to  the  causes  of  waste,  the 
burden  is  about  equally  divided  between  the  three:  organization  with 
19.3  points,  technique  with  19.8  points,  and  utilization  with  18.7  points. 

The  responsibility  for  waste  on  the  part  of  the  industry  as  a  whole 
was  conspicuously  less  in  such  highly  specialized  plants  as  book  printing 
than  in  general  jobbing  plants. 

Labor's  responsibility  for  waste  is  notably  less  in  non-union  plants 
because  of  lack  of  restrictions  enforced  by  the  unions,  and  the  resulting 
flexibility  in  maintaining  a  balance  between  labor  and  production. 

I.  MANAGEMENT  OF  INDIVIDUAL  PLANTS 

With  a  very  few  conspicuous  exceptions,  the  management  within 
the  individual  plants  is  still  typically  individualistic.  This  is  primarily 
because  the  individual  units  are  as  a  whole  so  small  that  they  do  not 
require,  or  indeed  justify  much  organization.  Organization  is  not  to  cur- 
tail individuality,  but  to  supplement  it,  and  make  possible  co-operation 
of  a  number  of  individuals  within  a  given  plant.  In  a  plant  so  small 
that  one  mind  is  able  to  compass  and  to  direct  all  phases  of  its  activity, 
organization  beyond  ordinary  records  would  only  complicate  matters  by 
injecting  devices  for  achieving  the  co-ordination  which  should  uncon- 
sciously take  place.  However,  about  50%  of  the  industry,  in  terms  of 
production,  although  only  5%,  in  terms  of  establishments,  operates  in 
sufficiently  large  units  to  justify  a  great  deal  more  organization  than 
now  exists. 

Production  Standards. — The  crux  of  waste  within  the  individual 
printing  establishment  is  the  lack  of  accurate  production  standards  con- 
stituting a  fair  basis  of  appraisal  for  the  individual  worker.  Only  through 
such  standards  can  the  printing  industry  avoid  the  wastes  due  to  its 
jobbing  nature,  and  secure  the  advantages  of  repetitive  operation. 

Only  two  of  the  plants  investigated  had  analyzed  their  work  into 
elementary  operations  for  which  they  could  predict  in  advance  the  time 
required  for  each  operation.  These  are  apparently  the  only  two  plants 


THE  PRINTING  INDUSTRY 


181 


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Organization 
Technique.  .  . 
Utilization... 

1 

182  WASTE  IN  INDUSTRY 

where  this  work  has  even  been  started.  They  are  in  somewhat  different 
fields,  almost  a  thousand  miles  apart,  and  both  have  carried  the  work  to  a 
point  comparing  favorably  with  similar  work  in  other  industries.  They 
have  been  conspicuously  successful.  One  specializes  in  book  work,  the 
other  in  catalogue  and  job  work,  and  between  them,  they  cover  virtually 
every  phase  of  the  industry. 

METHOD  OF  DETERMINING  QUOTA  TIME 

FOB 
DISPLAY  ADVERTISEMENT  OF  INTER-STATE  CAR  COMPANY 

In  reading  the  following  instructions  one  must  assume  the  use  of  various  tables 
for  different  factors  and  conditions. 

Preparation.  Covering  time  of  compositor  getting  copy  and  preparing  for  work 
at  prescribed  rates,  according  to  schedule  covering  various  operations  and  conditions. 

Display.  Covering  setting  and  justification  excepting  special  items  otherwise 
provided  for.  In  this  case  figured  to  be  twenty  lines.  The  rate  per  line  varies  accord- 
ing to  conditions. 

Straight  Matter.  Based  on  the  number  of  words  in  body  type  not  requiring  dis- 
play spacing.  In  this  £ase  figured  at  55  words. 

Diagonals.  Based  upon  an  estimate  of  the  number  of  spacing  units  necessary  to 
maintain  diagonals.  In  this  case  figured  to  be  six  for  each  corner. 

Rules.  A  flat  unit  for  each  rule  used  as  an  enclosure.  Rules  otherwise  used  would, 
of  course,  be  at  different  rates  according  to  circumstances  of  use. 

Borders.    A  flat  rate  for  enclosing  type. 

Sections.    A  flat  rate  for  sections  in  which  special  spacing  is  necessary. 

To  illustrate  what  I  mean  by  production  standards  and  their  use,  I 
have  secured  an  example  from  one  of  those  plants  of  the  method  of 
determining  a  production  quota  for  display  composition.  (Figure  3.) 
Contrary  to  the  general  opinion  throughout  the  trade,  this  illustration, 
taken  from  a  plant  which  has  used  production  standards  in  every  depart- 
ment over  a  long  period  of  time,  conclusively  proves  that  printing  is  sus- 
ceptible to  this  form  of  standardization. 

Piece-work  rates  are  contained  in  compositor's  rules,  but  are  seldom 
used.  Bindery  piece-rates  are  partly  in  use.  None  of  these  is  sound. 
They  are  advantageous  only  in  avoiding  responsibility  for  continuous 
employment  of  labor.  They  are  based  upon  casual  observation  and 
experience,  modified  by  bargaining  and  carry  no  obligation  on  the  part 
of  the  employer  beyond  payment  for  work  performed  in  accordance  with 
the  rate  set.  Scientifically  determined  quotas  are  based  upon  careful 
tune  and  motion  study  under  prescribed  conditions,  and  in  practice,  are 
used  either  as  a  basis  of  paying  a  bonus  in  addition  to  a  regular  salary, 
which  is  paid  regardless  of  production,  or  as  a  medium  for  readjustment 
of  weekly  work  rates. 

Without  the  ability  to  determine  what  a  worker  can  or  should  do, 
the  employer  is  largely  in  the  hands  of  his  employees,  for  he  is  unable 


THE  PRINTING  INDUSTRY 


183 


A6j6.yit.iooM 
OPERATION 

No. 

mar 

TIME 

WORK  ORDER  TICK 

&ne_ 

ET—  ORI 

.' 

Clock  I 

SOTAL 
Fob 

Preparation  
Display  
St.  Matter.  

55 

i§t 

J 
J. 

"1 

at 

Employe.... 

--  -  

fo.  _  _„ 

Corrections  .„  _  
Runover  —  
Respaced  Lines  

!I«"po 

Jfc.ft.S9 

Description 

G.  T.  No. 

SSv 

2...0.Q.. 

Page 

_   1    '""    1 

AIL  No. 

Diagonal 
Lifts....  
Box  Heads...-  

Rules  _  ~-~. 

Dato 

Non  BOQUI 

Boniu 

Standard 

Operation 

Off 

On 

Borders  
Cuts 

Off 

Mortises  :  

'~L 

7000 

~. 

On 

Pro  rate  with 

Spacing  and  Folio  
Tie  and  Untie  
Prove  and  Stack  

HI. 

Off 

On 



Actual 
Time™  
Total 
Time 

Total 
.Wage.  Unit  Unit  
Total 
Wage                 Bonus 

Est  _  Total 





i 

•SB. 

225-135-23     NYC    Neely 


Copy  of  actual  Work  Order  Ticker  under 
which  the  accompanying  display  advertisement 
was  set  by  hand  from  hand  written  copy. 
Name  of  customer  and  of  her  data  is  omitted, 
and  "Unifand  "Time"  figures  changed  at- 
request  of  concern  furnishing  this  example. 
Therelationof"Unit-"and  "Time  "figures 
{^however  the  same  as  in  the  original. 


E.  H.  DARRACH.  Pre« 
CEO.  J.  DIVER,  Mgr. 


Inter-State  Car 
Company 

OF  INDIANAPOLIS,  INDIANA 

Solicits  inquiries  of  Railroads  and  private 
car  owners 

Cars: 
Rebuilt: 
Repairing: 
Castings: 
ISCAR  Iron: 


Freight   type,   steel   or  wood  con- 
struction. 
Second-hand  or  reconstructed  cars. 

Freiglit  cars  repaired  on  contract. 

Grey  iron.  es|>ecially  locomotive, 
car  and  nmcliiiu-ry. 

Especially  adapted  for  piston  rings, 
shoes,  wcd«cs,  bull  rings,  cylinder 
heads,  steam  pipes,  etc. 

Iron  and  steel  machine  forgings  for 

cars. 


Forgings: 

Pressed  Steel :  Manif^d  work  on  sPecifi 
Undertimes: 


FIG.  3. 


184  WASTE  IN  INDUSTRY 

fairly  to  reward  his  workers  according  to  their  effectiveness.  Moreover, 
a  worker  unable  to  assure  either  himself  or  his  employer  of  the  value  of  his 
work  will  vitally  lack  incentive. 

Labor  unions  and  the  socially  minded  public  have  been  critical  of  all 
efforts  to  establish  production  standards.  They  hark  back  to  the  old 
piece-work  system,  and  point  out  that  it  can  result  only  in  driving  the 
workers  unduly.  An  understanding  of  the  essential  difference  between 
the  old  piece-work  system  and  the  proper  method  of  determining  quotas 
disposes  of  this  objection. 

Labor's  Approval. — It  is  interesting  in  this  connection  to  note  the 
changing  attitude  of  the  more  radical  labor  unions  on  the  question  of 
production  standards.  Some  unions  now  recommend  the  scientific  deter- 
mination of  standards  for  production.  The  Amalgamated  Clothing  Work- 
ers of  America  at  their  biennial  convention  in  Boston,  May,  1920,  passed  a 
resolution  endorsing  production  standards.  They  met  the  issue  squarely 
with  the  statement,  "  we  oppose  overspeeding  as  well  as  restraint  of 
output;  we  advocate  normal  production,"  and  concluded  that  "  the 
remedy  for  the  situation  is  a  week-work  system,  based  upon  reasonable 
standards  of  production;  the  former  will  conserve  the  health  of  the 
workers,  which  is  our  first  consideration;  and  the  latter  will  regulate 
output." 

Employers'  Objections. — Many  printers  insist  that  there  is  some 
peculiar  condition  of  their  particular  business  which  does  not  permit  the 
use  of  production  standards,  and  that  the  cost  of  establishing  them  is 
prohibitive  for  all  but  a  few  of  the  larger  plants. 

That  they  are  mistaken  so  far  as  the  larger  plants  are  concerned,  is 
amply  demonstrated  by  the  success  of  the  two  concerns  referred  to.  As 
for  the  prohibitive  cost  to  smaller  concerns,  this  objection  is  substantial, 
though  on  the  other  hand,  the  work  would  undoubtedly  be  developed 
jointly  or  through  the  United  Typothetae,  much  as  the  standard  cost 
methods  have  been  worked  out.  One  of  the  Typothetae  executives, 
in  explaining  the  work  of  his  organization,  volunteered  the  remark  that 
very  little  had  been  done  from  an  engineering  standpoint,  and  that  the 
work  had  so  far  been  confined  to  educating  the  body  of  printers  in  keeping 
cost  records,  their  use  in  making  prices,  and  an  elementary  understanding 
of  the  industry.  The  work  of  the  two  plants  in  question,  put  together 
and  unified,  would  in  itself  constitute  a  technique  sufficient  for  the  entire 
printing  industry. 

The  example  given  refers  only  to  composition,  but  similar  standards 
have  been  set  for  press  work  and  binding,  and  in  fact,  all  the  major  opera- 
tions in  the  printing  industry.  The  example  for  composition  was  selected 
because  it  is  with  special  reference  to  display  composition  that  printers 
have  most  persistently  maintained  that  it  is  impossible  to  set  standards. 


THE  PRINTING  INDUSTRY  185 

II.  MANAGEMENT  OF  INDUSTRY  AS  A  WHOLE 

United  Typothetae  of  America. — Before  taking  up  what  should  be 
done,  credit  is  first  due  for  the  most  excellent  work  already  accomplished 
by  the  United  Typothetae  of  America  and  its  local  branches.  Its  edu- 
cational work  has  been  extensive,  well  conceived  and  directed.  It  covers 
not  only  basic  information  concerning  the  industry,  but  extensive  work 
in  cost  finding  and  labor  relations. 

A  survey  made  by  the  United  Typothetae  of  New  York  City  showed: 

56  plants  using  standard  cost  system. 

187  plants  with  no  cost  system,  but  with  a  knowledge  of  all  general  costs. 
741  plants  with  no  cost  system  and  incomplete  knowledge  of  all  general  costs. 
554  plants  with  no  cost  system  and  incomplete  knowledge  of  general  costs. 

The  first  two  groups  made  money,  the  last  two  lost  money  in  1919. 

The  work  of  the  Industrial  Relations  Department  of  the  United 
Typothetae,  and  that  of  the  International  Joint  Conference  Council, 
organized  early  in  1919,  is  notable  especially  in  its  potentiality  for  the 
gradual  elimination  of  strikes,  lockouts,  and  union  regulations  and 
traditions  adversely  affecting  and  hindering  production. 

In  connection  with  the  work  of  the  United  Typothetae,  I  recommend 
that  a  section  be  added  for  the  development  and  utilization  of  standards, 
as  already  outlined  for  the  individual  printer,  so  that  the  smaller  printers 
who  cannot  afford  to  do  this  work  individually,  ra&y  none  the  less  partici- 
pate in  its  advantages. 

Standardization  of  Equipment. — Probably  in  no  other  industry  has 
the  development  of  the  machine  process  been  carried  further  than  in 
printing.  Every  substantial  establishment  can  tell  the  story  of  an  almost 
uninterrupted  series  of  replacements,  due  to  the  constant  improvement 
in  mechanical  devices.  If  we  contrast  the  iron  hand  press  of  the  London 
Times  in  use  until  1814,  which  had  a  maximum  capacity  of  not  over  200 
impressions  an  hour,  with  the  capacity  of  a  modern  press,  which  is  able 
to  print  and  fold  24,000  copies  of  a  16-page  metropolitan  newspaper  in 
the  same  time;  if  we  contrast  the  modern  Linotype  and  Monotype 
machines  with  the  tedious  processes  of  hand  composition,  or  examine  the 
modern  magazine  presses  which  print,  fold  and  bind  in  one  continuous 
operation,  and  consider  that  all  this  change  has  taken  place  within  a 
period  of  some  eighty  years,  we  realize  the  extent  of  replacement  which 
must  have  occurred,  and  the  reason  for  the  lack  of  standardization  that 
exists.  With  the  increasing  complexity  of  equipment,  this  lack  of  stand- 
ardization becomes  daily  more  costly. 

As  illustrative  of  what  may  be  accomplished  in  standardization  of 
equipment,  one  has  but  to  point  to  the  already  accomplished  standardi- 
zation of  type  bodies.  Prior  to  the  year  1885  each  type  foundry  cast  its 


186  WASTE  IN  INDUSTRY 

type  on  a  more  or  less  different  body,  and  although  the  exchange  from  the 
old  system  to  the  point  system  involved  an  expenditure  of  some  $3,000,000 
by  the  type  founders,  it  is  universally  conceded  that  this  expenditure  has 
been  saved  many  times  over. 

Impressive  results  have  also  been  achieved  in  the  standardization  of 
colors  for  printing,  ink  and  combinations  of  colors  and  shades  of  paper 
and  ink.  The  "  Grammar  of  Colors  "  recently  issued  by  the  Strathmore 
Paper  Company  represents  a  notable  contribution  in  this  connection. 
The  Standardization  Committee  of  the  American  Institute  of  Graphic 
Arts  is  working  on  the  standardization  of  process  colors,  and  it  is  hoped 
that  these  standards  will  be  in  operation  in  most  of  the  larger  engraving 
and  printing  plants  within  a  year  or  so.  Determination  of  color  com- 
binations by  trial  and  error,  and  elaborate  color  proofs  are  wastes  which 
can  be  eliminated  through  standardization. 

Proportionately  greater  results  may  be  anticipated  from  a  co-ordinated 
standardization  of  machinery,  paper  and  products. 

Among  all  the  manufacturers  of  flat  bed  cylinder  presses,  there  is  an 
almost  unlimited  number  of  variations  in  size,  yet  all  agree  that  a  limited 
number  of  standard  sizes  would  be  advantageous.  The  President  of  one 
of  the  large  companies  manufacturing  printing  presses  says:  "  For  forty 
years  or  more,  I  personally  have  been  of  the  opinion,  and  have  stated 
it  everywhere,  whenever  occasion  arose,  that  if  we  could  consolidate  on 
three  sizes  of  presses,  the  printer  and  we  ourselves  would  be  much  better 
off — these  sizes  being,  a  press  to.  print  a  sheet  25X25  or  smaller,  another 
to  print  a  sheet  38X50  or  smaller,  and  another  to  print  a  larger  sheet 
as  may  finally  be  determined." 

The  President  of  the  Dexter  Folding  Company  states: 

"  We  understand  that  the  United  Typothetae  of  America  recently  made  a  survey 
of  the  different  types  and  sizes  of  folding  machines,  and  found  that  there  were  about 
600.  Prior  to  three  years  ago,  we  were  building  more  or  less,  frequently  more  than 
sixty  types  and  sizes  of  folding  machines.  Through  exhaustive  research,  with  the 
help  of  the  paper  manufacturer,  printer,  and  binder,  we  have  succeeded  in  meeting 
the  practical  needs  of  the  purchaser  of  printing  with  approximately  six  types  of 
folding  machines,  made  in  a  minimum  number  of  sizes.  This  plan  not  only  simpli- 
fies and  economizes  our  factory  production,  but  even  more  so  it  economizes  the 
production  of  printing  and  binding. 

"  Because  of  the  threatened  intense  competition,  it  is  necessary  for  the  manu- 
facturers of  machinery,  the  printer,  the  binder  and  the  purchaser  of  printing  to 
follow  Mr.  Hoover's  suggestion,  and  obtain  the  largest  measure  of  standardization, 
so  as  to  eliminate  waste  in  material  and  human  effort." 

Standardization  of  machine  sizes  would  make  possible  the  use  of  one 
machine  for  a  greater  variety  of  different  jobs.  In  every  printing  estab- 
lishment of  any  size,  one  sees  expensive  machines  covered  up  and  out  of 
use,  or  inefficiently  used  for  purposes  other  than  that  for  which  they  were 


THE  PRINTING  INDUSTRY 


187 


built.  A  printer  secures  a  contract,  and  buys  a  machine  to  do  the  work 
economically.  When  the  work  comes  up  for  contract  next  time,  if  some 
other  printer  secures  it,  it  invariably  means  another  special  machine. 
One  concern  paid  $17,000  for  a  special  press  for  printing  a  trading  stamp. 
On  losing  this  job,  the  press  was  scrapped  and  later  sold  for  $2,000.  Since 
then  the  contract  has  been  awarded  to  three  other  printers  in  succession, 
and  each  in  turn  purchased  a  new  press  which  he  had  to  scrap  or  use 
disadvantageously  at  the  expiration  of  his  contract. 

In-  recommending  the  standardization  of  machine  equipment,  I 
recognize  that  the  machine  manufacturers  have  no  association  to  take  the 
initiative  in  this  work,  and  I  recommend  that  such  an  association  be 
formed.  As  one  machine  plant  may  make  equipment  for  a  variety  of 
trades,  it  would  be  necessary  for  such  an  association  to  have  separate 
branches  for  the  different  leading  trades. 

Standardization  of  Paper. — There  are  as  many  variations  in  the 
possible  combinations  of  content,  finish,  color,  thickness  and  size  of 
paper  as  there  are  combinations  of  the  three  prime  colors,  red,  yellow 
and  blue.  This  is  a  natural  outgrowth  of  the  evolution  of  an  industry,  but 
the  time  has  come  when  it  should  be  faced  and  corrected.  There  are  two 
main  factors :  what  the  standards  should  be,  and  how  to  make  them  effective. 

Content. — The  most  practical  immediate  step  seems  to  be  the  limiting 
of  brands  and  water-marks  by  the  mills  themselves.  This  will  result  in 
economy  of  production,  and  will  furnish  the  same  protection  to  the 
consumer  that  exists  in  all  trade-marked  goods.  I  recommend  to  buyers 
of  printing  that  they  insist  upon  one  of  a  limited  number  of  well-estab- 
lished brands  or  water-marks.  This  will  stimulate  legitimate  competition 
in  both  price  and  quality,  while  protecting  the  buyer  from  his  own  ignor- 
ance, since  a  mill  cannot  afford  to  vary  substantially  the  content  of  its 
established  brands. 

As  illustrating  what  can  be  done,  the  American  Writing  Paper  Company 
recently  announced  the  following  standardization  of  their  different  grades 
of  paper: 


1917 

1921 

Bonds  

35  grades 

9  grades 

T-edger  

32 

5 

Writing  

63 

3 

Linen 

36 

4 

Cover 

22 

5 

Drawing  

5 

3 

Mimeograph  

5 

3 

Wedding  and  Papeterie.. 

19 

9 

• 

237 

41 

188  WASTE  IN  INDUSTRY 

Multiplying  this  difference  by  the  unavoidable  variations  in  color, 
thickness  and  size,  the  total  variables  eliminated  reach  staggering  propor- 
tions. It  is  estimated  that  this  change  will  reduce  the  stock  necessary 
to  be  carried  by  the  mill  and  its  representatives  to  about  one-half  of  its 
former  proportions. 

There  are  approximately  6,000  brands  of  paper  50%  of  which  are 
more  or  less  active.  Every  considerable  paper  merchant,  a  few  printers, 
and  even  some  large  consumers  have  their  own  brands  or  water-marks. 
One  mill  company  admits  having  over  4,000  dandy  rolls.  There  is  also  an 
enormous  amount  of  paper  made  to  sample,  without  any  real  ability  on 
the  part  of  the  buyer  to  judge  of  the  value  or  fitness  of  the  paper  until 
it  is  too  late.  Several  government  departments  have  each  their  own 
specifications,  without  relation  to  each  other,  or  to  any  standard 
brand. 

There  is  not  as  yet  sufficient  standardization  of  the  main  components 
from  which  paper  is  made  to  permit  of  exact  standards.  Wood  and  rag 
fibre,  the  principal  components  of  paper,  vary  so  much  that  a  merely 
quantitative  standardization  would  not  be  effective.  The  same  thing  is 
true  to  a  lesser  degree  of  clay,  alum,  and  other  chemicals  definitely 
affecting  the  printing  and  wearing  quality  of  paper.  Some  broad  classi- 
fication of  grades  should,  however,  be  determined  upon  for  each  kind  of 
paper,  as  A,  B,  C,  for  each  of  the  principal  kinds — Bond,  Ledger,  Writing, 
Super,  Machine  Finish,  etc. — and  mills  should  grade  their  brands  within 
such  classifications. 

There  should  also  be  a  standard  testing  device  and  standard  tests 
for  each  grade.  The  device  should  be  developed  and  the  standards  set 
by  joint  action  of  the  interested  parties.  I  believe  that  standards  for 
tearing,  folding  and  bursting,  with  per  cent  of  wood  and  rag  fibre  would 
be  sufficient.  This  would  in  itself  weed  out  the  enormous  duplication  of 
brands,  even  within  the  line  of  one  mill  or  jobber.  This  duplication 
serves  no  useful  purpose.  It  ties  up  vast  sums  of  money  in  unneces- 
sary stock,  and  is  at  the  root,  intentionally  or  otherwise,  of  much  mis- 
understanding as  to  values  in  paper. 

The  various  departments  of  the  government  might  well  take  the  first 
step  by  standardizing  the  paper  they  use  on  the  basis  of  a  selected  list 
of  well-known  brands,  as  has  been  done  by  the  German  Government  for 
ten  years  or  more.  The  standardizing  and  grading  of  gold,  cotton,  wool, 
lumber,  rubber,  oil,  etc.,  has  proved  to  be  of  such  great  practical  advantage, 
that  there  can  hardly  be  any  doubt  as  to  the  desirability  of  similar  grading 
of  paper. 

Finish. — If  one  is  able  to  judge  of  the  value  of  paper,  there  is  no  objec- 
tion to  the  mill  or  dealer  asking  an  additional  price  for  any  given  finish 
that  the  buyer  may  desire.  The  point  is  that  the  buyer  should  know 


THE  PRINTING  INDUSTRY  189 

comparatively  how  much  he  is  paying  for  a  particular  finish,  and  not  be 
misled  by  appearances. 

Color.— It  is  doubtful  how  far  standardization  of  color  is  practicable 
in  paper. 

Thickness. — There  is  no  advantage  in  minor  gradations  of  thickness, 
except  for  paper  made  for  other  purposes  than  printing,  which  will  neces- 
sarily have  to  meet  special  requirements.  The  ordinary  consumer  of 
paper  cannot  distinguish  between  differences  of  less  than  10  pounds  to 
500  sheets  of  25X38. 

For  mechanical  reasons,  it  is  seemingly  impracticable  to  grade  paper 
by  caliper  thickness,  though  this  would  be  the  desirable  thing  to  do. 
There  are,  however,  14  different  bases  of  weight  for  different  papers,  as, 
Book,  Writing,  Wrapping,  etc..  I  recommend  that  1,000  sheets,  25X38, 
graded  in  steps  of  not  less  than  20  pounds  be  adopted  as  the  standard 
for  all  paper. 

Size. — Standardization  in  this  connection  has  already  received  a  great 
deal  of  consideration,  and  much  progress  has  been  made,  so  far  as  the 
standards  themselves  are  concerned.  There  is  not  the  same  opportunity 
here  for  misunderstanding  between  buyer  and  seller,  but  there  is  an  even 
greater  opportunity  for  waste  through  lack  of  information  about  advan- 
tageous sizes. 

As  a  glaring  example  of  the  utter  disregard  of  standard  sizes,  the 
Federal  Reserve  bank  check  will  not  cut  without  waste  from  any  of  the 
now  numerous  regular  paper  sizes.  A  draft  questionnaire  issued  during 
the  war  was  of  such  non-standard  size  as  to  require  special  filing  cabinets. 
The  Technical  Publishers'  Association  on  measuring  927  catalogues  found 
147  different  sizes. 

In  a  plant  printing  2,000,000  each  of  three  different  mail  order  cata- 
logues, the  same  paper  was  required  in  66,  70  and  73  inch  widths,  the 
economical  width  for  that  particular  paper  being  72  inches.  A  customer 
ordering  a  catalogue  of  a  certain  size  may  make  necessary  a  very  consid- 
erable wastage  by  specifying  some  fraction  of  an  inch  which  is  really 
negligible  to  him.  Or  he  may  and  very  often  does  make  it  necessary  for 
the  paper  to  be  made  to  order,  thus  involving  waste  in  the  entire  process 
of  manufacture.  Wastage  of  only  one-quarter  inch  on  a  6X9  page  is 
equal  to  7%  of  the  total  cost  of  the  paper. 

The  establishment  of  standard  sizes  of  paper  should  extend  to  a  corre- 
sponding standardization  of  printed  pages  and  columns,  through  which 
a  further  economy,  apart  from  that  in  paper,  would  be  achieved.  John 
Sullivan,  Secretary  of  the  Association  of  National  Advertisers,  states  that 
standardization  of  newspapers  to  one  size  would  make  possible  an  annual 
saving  of  three  to  five  millions  on  composition  and  plates  alone. 

Stalker's  Universal  Rate  Service  (see  the  following  table)  shows  that 


190  WASTE  IN  INDUSTRY 

among  the  current  magazines  there  are  18  variations  in  width,  and  76 
variations  in  length  of  page  or  column.  Among  trade  paper  publications, 
there  are  33  variations  in  width,  and  64  in  length.  Even  among  news- 
papers, there  are  16  in  width  and  55  in  length.  Taking  into  considera- 
tion the  variations  of  width  within  each  length  and  vice  versa,  there  is  an 
appalling  total  of  variations  which  accomplishes  absolutely  nothing  and, 
directly  and  indirectly,  costs  the  public  certainly  not  less  than  a  hundred 
million  dollars  each  year. 

Standards  for  cover  paper  sizes  have  not  only  been  established,  but  are 
accepted  and  used  more  than  any  other  paper  standards.  The  principal 
variants  in  cover  paper  consist,  however,  of  things  other  than  size,  so 
that  the  resultant  saving  has  been  limited. 

Unit  of  Count. — While  much  progress  has  been  made  in  this  direction, 
there  is  room  for  improvement.  The  old  ream  and  quire  are  still  used. 
All  printing  is  ordered  in  thousands,  and  there  is  no  conceivable  reason 
why  the  basis  of  material  should  not  be  on  the  same  unit. 

Advantages  of  Standardization. — Standardization  of  paper  and  equip- 
ment, with  a  corresponding  standardization  of  printed  pages  and  columns 
would : 

1.  Permit  many  machines  now  made  very  largely  by  hand  to  be  produced  in  quan- 
tity to  jigs  and  tools,  would  make  possible  interchangeability  of  parts. 

2.  Reduce  the  amount  of  machinery  necessary  to  each  printer  to  meet  trade  require- 
ments. 

3.  Eliminate  the  waste  of  discarding  or  sacrificing  machines,  when  a  contract  for 
printing  changes  hands. 

3.  Facilitate  planning.  Work  could  be  laid  out  and  planned  for  a  group  of  machines, 
instead  of  for  a  given  machine. 

5.  Make  possible  interchangeability  of  advertising  and  catalogue  plates. 

6.  Facilitate  the  filing  of  data  for  reference  purposes,  especially  catalogues  for  pur- 
chasing agents.    A  beginning  has  already  been  made  in  the  standardization  of  cata- 
logues within  industries.    The   electrical   jobbers  have  accepted  7£XlOf  inch  as   a 
standard  size,  and  90  per  cent  of  their  catalogues  now  correspond  to  this  standard.    The 
National  Association  of  Purchasing  Agents  have  adopted  a  7^X101  inch  basis  for 
forms,  or  a  32X44  standard  sheet. 

7.  Make  possible  more  continuous  operation  in  the  process  of  manufacturing  paper. 
It  would  not  be  necessary  to  stop  so  often  for  changes  in  grade,  size  and  thickness.    In 
one  mill  243  size  changes  were  made  in  one  month  on  one  machine,  running  on  7  grades 
of  bond  paper,  without  consideration  of  weight. 

8.  Reduce  paper  stocks  now  carried  an  hand  to  meet  trade  requirements.    In  con- 
sidering this  economy,  mills  and  the  entire  paper  jobbing  industry,  as  well  as  the  printer, 
may  be  considered  as  one.    There  are  no  reliable  figures  as  to  the  paper  carried  on  hand, 
but  it  is  safe  to  say  that  it  is  considerably  more  than  a  hundred  million  dollars'  worth. 
This  investment  could  be  halved  and  the  turnover  doubled  through  standardization. 

Obstacles  to  Standardization  of  Paper. — In  considering  the  respon- 
sibility of  the  individual  manager  for  waste,  certain  supposed  objections 
of  labor  and  of  the  managers  themselves  were  stated.  Likewise  in  the 


THE  PRINTING  INDUSTRY 


191 


VARIATIONS  IN  PAGE  AND  COLUMN  WIDTHS  AND  LENGTHS 

AS  SHOWN  BY 
STALKER'S    UNIVERSAL    RATE    SERVICE 


Magazines 


Trade  Papers 


fl 


4  I 


LENGTH 

14     \ 

15 

16 

17 

18 

19 

20 


1     3 


192  WASTE  IN  INDUSTRY 

matter  of  standardization  of  paper j  obstacles  conscious  and  otherwise 
will  be  met.  So  far  as  these  obstacles  are  unconscious,  they  are  largely 
a  result  of  custom  which  has  crystallized  into  habit  and  prejudice.  Such 
obstacles  can  usually  be  removed  by  education  appealing  to  self-interest. 
There  is,  however,  another  more  subtle  type.  It  arises  from  the  fact 
that  in  isolated  instances  lack  of  standardization  gives  rise  to  the  following 
money  advantages: 

1.  To  Printer,     (a)  Profit  secured  through  abnormal  cuttings,  resulting  from  using 

non-standardized  materials. 

(b)  Ability  to  break  specifications  in  competitive  bidding. 

(c)  Inability  of  purchaser  to  make  comparison  of  prices  on  non- 
standardized  products. 

(d)  Encouragement  to  salesmen  to  recommend  unusual  features  in 
avoiding  competition. 

2.  To  Paper  Manufacturer.     Opportunity  to  avoid  cumulative  responsibility  for 

unstandardized  materials. 

3.  To  Paper  Jobber. — Often  the  manufacturer  does  not  have  sufficient  capital  to 

maintain  the  large  local  sales  organizations  needed  to  sell  a 
non-standardized  product.  The  provision  of  such  an  organiza- 
zation  by  the  jobber  gives  him  control  over  the  manufacturer. 

4.  To  Labor. — The  additional  work  required  furnishes  greater  employment. 

5.  To  Machinery  Manufacturers. — Additional  business  through  necessity  for  greater 

quantity  of  machinery  required  through  lack  of  interchange- 
ability  and  special  requirements  for  special  features. 

Constructive  Action  for  Standardization.— Seven  national  trade 
organizations,  representing  95%  of  the  consumers  of  paper,  and  over  11,000 
of  the  leading  firms  in  their  lines,  including  printers,  stationers,  litho- 
graphers, engravers,  advertisers  and  purchasing  agents,  have  passed 
resolutions  calling  attention  to  the  waste  in  the  industry,  and  urging 
co-operation  in  eliminating  unnecessary  grades,  weights  and  sizes,  and 
reducing  the  number  of  colors,  finishes,  water-marks,  etc. 

The  resolution  passed  by  the  United  Typothetae,  which  was  specifi- 
cally indorsed  by  several  other  associations,  characterizes  the  paper  situ- 
ation as  "  a  serious  menace  to  the  printing  industry,"  and  calls  attention 
to  the  fact  that  printing  equipment  is  increasing  more  rapidly  than  paper 
manufacturing  equipment,  both  in  quantity  and  in  production  percentage, 
causing  such  increase  of  prices  both  in  paper  and  printing  as  to  threaten 
serious  curtailment  of  the  volume  of  printing.  In  conclusion,  the  resolu- 
tion calls  on  every  one  concerned  to  appoint  committees  to  co-operate  with 
the  Typothetae's  committees  to  work  on  standardization. 

Answers  to  a  questionnaire  sent  out  by  the  Typothetae  indicate  that 
the  printers  believe  they  already  do  or  can  control  the  buying  of  paper  for 
commercial  and  job  printing.  If  this  is  true,  they  themselves  have  the 
power  to  make  the  resolution  effective  for  this  class  of  paper. 

A  meeting  held  in  Chicago,  on  May  22,  1918,  under  the  auspices  of 


THE  PRINTING  INDUSTRY  193 

the  National  Association  of  Purchasing  Agents,  is  probably  the  most 
representative  meeting  to  consider  this  subject  ever  held,  but  its  delibera- 
tions were  limited  to  the  standardization  of  catalogue  and  paper  sizes. 
A  resolution  passed  by  the  Catalogue  Conference  was  as  follows: 

Resolved,  That  catalogues  be  standardized  to  6X9"  or  7|XlOf",  or  8X11". 

Resolved,  That  we  recommend  for  catalogues  the  manufacture  of  paper  sheets 
ranging  as  follows:  25X38",  32X44",  33X46",  with  their  double  sizes.  That 
we  also  indorse  the  weights  of  40,  45,  50,  60,  70  and  80  pounds  on  the  basis  of 
25X38",  and  that  colors  be  limited  to  white  and  natural. 

A  recommendation  of  the  Standardization  Committee  of  the  National 
Association  of  Purchasing  Agents  reads:  "  In  order  that  the  investment 
in  catalogues  bought  by  purchasing  agents  may  reach  the  highest  degree 
of  productiveness,  we  urge  that  all  catalogues  meant  for  the  use  of  pur- 
chasing agents  be  made  7|  X  10f ",  or  in  half  sizes,  saddle  stitched  so  that 
they  will  open  flat  to  that  size,  for  filing  in  such  manner  as  will  insure 
their  coming  to  hand  when  wanted. 

"  This  recommendation  was  unanimously  indorsed  by  the  National 
Association  of  Purchasing  Agents  in  convention.  This  Association  has 
appointed  a  Committee  on  Promotion  of  Standards  to  encourage  the  use 
of  this  and  other  standards  throughout  the  business  world." 

How  to  Make  Standards  Effective. — Individuals,  or  even  groups  and 
trade  associations,  unless  all  inclusive,  have  neither  the  knowledge  to  make 
the  most  desirable  standards,  nor  the  ability  to  make  them  effective. 
Collective  action  by  all  the  trade  organizations  affecting,  or  affected  by 
the  printing  industry  is  needed,  in  order  that  the  standards  of  equipment, 
materials  and  product  may  be  co-ordinated,  and  in  order  that  financial 
and  moral  support  necessary  to  put  over  a  publicity  campaign  may  be 
secured,  the  object  of  the  campaign  being  to  give  the  buyer  of  print- 
ing a  knowledge  of  the  standards  agreed  upon,  and  a  knowledge  of  the 
selfish  advantage  to  be  gained  through  conforming  to  them. 

Apparently  the  interest  of  all  concerned,  excepting  the  consumer,  has 
already  been  aroused,  and  the  research  done.  Unified  action  and  educa- 
tion of  the  public  are  needed  next.  While  I  do  not  recommend  govern- 
ment determination  in  matters  of  this  kind,  I  very  definitely  believe  that 
it  is  part  of  the  work  of  the  Department  of  Commerce  to  lend  its  support 
and  assistance  in  bringing  about  meetings  to  this  end. 

HI.  LABOR 

Organization. — The  printing  industry  is  over  50%  unionized.  There 
were  by  the  1914  census  of  printing  and  publishing  (including  newspapers 
and  periodicals)  272,092  workers  in  the  industry,  and  the  Allied  Printing 
Trades  Council  claims  150,000  members.  In  New  York  City  approxi- 


194  WASTE  IN  INDUSTRY 

mately  60,000  persons  are  employed,  the  Union  membership  being  about 
40,000.  The  1914  census  shows  that  52%  of  all  workers  are  in  plants 
employing  50  persons  and  less;  that  25%  of  establishments  are  one-man 
shops  and  further  that  75%  of  all  establishments  employ  five  people  or 
less.  These  small  plants  are  the  most  difficult  for  the  unions  to  organize. 
Sixty-eight  per  cent  of  the  workers  are  native  born.  This  is  high  as  com- 
pared with  the  percentage  in  the  metal  trades,  which  is  30%,  and  with 
that  in  the  building  trades,  which  is  25%. 

An  average  book  and  job  plant  must  deal  with  the  following  individual 
unions: 

Compositors  (typographical)  Mailers 

Cylinder  Pressmer  Stampers  and  Gold  Layers 

Cylinder  Feeders  Paper  Cutters 

Job  Pressmen  Blank  Book  Workers 

Job  Press  Feeders  Bookbinders 

Sheet  Straighteners  Bindery  Women 

Paper  Handlers 

The  selection  of  personnel  is  a  responsibility  of  both  management  and 
labor,  though  it  rests  almost  wholly  with  labor  in  union  plants.  No 
status  of  competence  is  required.  Union  membership  makes  a  man 
eligible.  Each  department  foreman  employs  the  workers  in  his  depart- 
ment. Workers  are  supplied  from  the  local  union  headquarters.  Prece- 
dence is  given  to  the  first  name  on  the  list,  without  reference  to  speciali- 
zation, convenience  of  home  to  plant,  or  other  factors  having  a  bearing 
on  labor  turnover. 

Production  Standards. — As  recommended  to  the  employing  printer 
that  he  develop  standards  for  measuring  production  of  his  employees,  I 
recommend  to  labor,  both  individually  and  collectively,  that  it  change  its 
present  attitude  of  opposition  or  indifference  to  a  frank  and  aggressive 
insistence  upon  proper  standards  for  production.  This  would  enable 
each  employee  to  secure  direct  evidence  of  the  service  which  he  renders, 
and  properly  to  evaluate  himself  as  to  wages. 

Production  standards,  or  what  we  call  quotas,  have  been  characterized 
by  labor  and  other  critics  as  making  the  work  monotonous,  killing  initia- 
tive, unduly  speeding  up  the  work,  and  tending  to  displace  inefficient 
people  who  have  to  make  a  living  somehow. 

Monotony. — As  to  the  monotony  entailed,  the  facts  show  quite  the 
contrary.  The  basic  principle  of  all  diversion  is  doing  something  against 
an  opponent,  or  against  a  standard,  and  it  also  applies  to  work.  Measur- 
ing oneself  against  a  standard  for  a  reward  of  merit  is  more  stimulating 
than  a  monotonous  routine  without  this  stimulus. 

Killing  Initiative. — As  regards  killing  initiative,  it  is  hard  to  see  that 
there  is  any  advantage  in  doing  a  thing  in  a  traditional  manner.  The 


THE  PRINTING  INDUSTRY  195 

methods  used,  excepting  where  scientifically  determined,  are  almost  invari- 
ably traditional,  and  have  grown  up  without  any  conscious  analysis  of 
comparison.  Mrs.  Carleton  Parker,  who  has  been  investigating  factory 
conditions  by  taking  positions  as  an  unskilled  worker  in  several  different 
types  of  plant,  says  that  she  made  it  a  point  to  ask  every  girl  to  whom  she 
talked  whether  she  liked  to  do  the  same  thing  over  and  over  again,  or  to 
do  different  kinds  of  things  and  thus  break  the  monotony.  Without  one 
exception,  they  all  replied  that  they  preferred  to  keep  on  doing  the  same 
thing. 

After  she  had  been  working  a  kick  press  in  a  brass  factory  on  one  job 
for  three  days,  and  was  exhausted  by  the  interminable  repetition,  she  asked 
the  woman  next  to  her  how  long  she  had  been  operating  on  the  job  she 
was  doing. 

"  Six  weeks." 

"  Wouldn't  you  like  to  do  something  else — don't  you  get  terribly  tired  of  it?" 

"  Oh  no,  you  get  used  to  it,  and  then  you  don't  want  to  change." 

"  How  long  did  you  work  at  the  job  you  had  before  you  came  here?" 

"  Six  months." 

"  Didn't  you  get  tired  of  that?" 

"  No — when  you  get  the  swing  of  it  once,  you'd  rather  keep  on  doing  the  same 
thing  than  learn  to  do  something  else." 

In  a  candy  factory  she  found  that  the  girls  preferred  packing  small 
uniform  boxes  of  one  or  two  kinds  of  candy,  to  filling  the  larger  boxes 
holding  a  variety,  and  giving  opportunity  for  choice  and  individuality 
in  the  work.  Mrs.  Parker  frankly  admits  that  this  experience  has  quite 
shattered  a  very  fond  illusion  about  the  worker's  instinct  to  create. 

Speeding  Up  Work. — Fear  of  speeding  up  the  worker  implies  a  funda- 
mental lack  of  understanding  of  the  theory  of  production  standards. 
Their  basic  principle  involves  consideration  for  the  worker's  physical  and 
mental  welfare,  if  only  to  keep  him  at  his  maximum  of  efficiency  over 
a  long  period  of  time.  A  stated  living  wage  and  fixed  hours  of  employ- 
ment without  regard  to  production  are  essentials  of  such  consideration. 
I  also  believe,  though  this  is  not  as  yet  universally  recognized,  that,  apart 
from  the  abstract  justice  involved,  and  if  only  for  the  psychological  effect 
on  the  worker,  he  should  be  represented  in  determining  the  quota.  This 
would  wholly  meet  the  objection. 

Displacing  Inefficient  People. — In  practice  it  is  found  that  where 
work  is  properly  studied  and  analyzed,  and  quotas  are  scientifically  set, 
differences  not  previously  recognized  develop  which  permit  of  adjusting 
people  to  their  tasks  in  such  a  manner  that  inequalities  of  ability  and 
temperament  can  be  allowed  for  or  overcome.  So  far  as  I  know,  the  only 
conspicuously  incompetent  people  who  hold  their  jobs  over  a  consider- 
able period  are  those  who  previously  rendered  a  life  of  competent  service 


196 


WASTE  IN  INDUSTRY 


to  the  same  concern,  and  there  is  every  reason  why  they  should  continue 
to  be  cared  for  in  the  same  way,  regardless  of  whether  they  meet  their 
production  quotas  or  not. 

Restrictions. — At  present  the  printing  unions  almost  without  excep- 
tion oppose  aggressively  or  otherwise,  not  only  the  setting  of  standards 
for  production,  but  also  the  measuring  of  work  performed. 

Many  employing  printers  claim  that  there  has  been  a  marked  falling 
off  in  production.  Since  there  are  no  production  standards  by  which  to 
measure  this,  it  is  not  possible  to  reach  conclusions.  The  following 
examples  are,  however,  interesting  in  this  connection. 

One  plant  reports  the  following: 

1916  Average  5,400  ems  per  hour 

1920  Average  4,200  ems  per  hour 

Decrease  in  4   years  1,200  ems  per  hour 

Another  plant  doing  at  different  periods  identically  the  same  jobs  in 
magazine  and  pamphlet  work  showed  the  following  comparison  in  average 
time  per  page: 

TABLE  SHOWING  DECREASE  IN  PRODUCTION  EXPRESSED  IN  AVERAGE  TIME  PER  PAGE 


1919 

1920 

Hand 

Linotype 

Hand 

Linotype 

Composition 

Composition 

Composition 

Composition 

.525 

.303 

1.214 

.375 

.872 

.532 

1.091 

.761 

.506 

.595 

.514 

.477 

.516 

.741 

.717 

.300 

.520 

.509 

.939 

1.060 

1.201 

.362 

1.336 

.550 

1.111 

.751 

1.337 

.700 

5.251 

3.  793  Total 

7.148 

4.  223  Total 

This  shows  an  increase  of  time  or  loss  of  production  of: 

HandWork 36% 

Linotype  machine  work H£% 

The  following  statement  is  taken  from  an  affidavit  in  connection  with 
an  arbitration  case:  "  We  are  receiving  considerable  less  production  than 
in  former  years,  and  our  records  show: 

1918  average  sheets  per  hour  767 

1919  "    "   "   "    744 
(9mo.)1920    "    "   "   "    742 


THE  PRINTING  INDUSTRY 


197 


"  This  means  200  impressions  per  day  per  press,  or  10,000  per  day  for 
50  presses,  or  3,000,000  impressions  less  production  per  year,  which  clearly 
shows  a  lack  of  interest  by  our  people." 

The  belief  that  there  has  been  a  falling  off  in  production  is  not  always 
supported  by  the  figures,  as  is  indicated  in  the  following  letter  from  a 
leading  Middle  Western  printer: 

"  Complying  with  your  request,  I  wish  to  state  that  our  Linotype  and  Press 
Room  hour  averages  for  years  1917-20  were  as  follows: 


Linotype 

Press  Room 

Ems 

Impressions 

1917 

4143 

1049 

1918 

3987 

1026 

1919 

4180 

1044 

1920 

4167 

1078 

"When  I  look  at  these  figures,  I  see  that  I  was  mistaken  in  stating  verbally 
to  you  that  the  average  production  in  these  departments  had  fallen  off.  In 
regard  to  the  Linotype  average,  however,  I  would  state  that  in  1919  and  1920 
we  had  to  pay  proportionately  larger  sums  above  the  scale  in  order  to  get  this 
production.  I  feel  sure  that  I  am  correct  in  making  the  statement  that  the 
average  of  the  linotype  scale  man  has  fallen  off  during  these  recent  years." 

Owing  to  the  fact  that  there  are  in  the  printing  business  almost  no 
production  records  which  are  related  to  standards,  no  means  of  deter- 
mining the  real  fluctuation  in  production  exist.  Available  chargings  per 
month  are  misleading,  because  the  work  done  in  any  one  month  may  not 
be  charged  for  several  months  thereafter.  (See  Figure  4.) 

Craft  Distinctions. — Union  prohibitions  with  reference  to  production 
and  production  methods  are  also  a  serious  matter.  The  unions  insist 
upon  arbitrary  distinctions  in  the  kinds  of  work  done  by  members  of  the 
various  craft  unions,  and  as  to  the  number  of  persons  employed  in  con- 
nection with  certain  machines. 

Perhaps  their  most  trying  practice  is  the  insistence  that  members  of 
one  craft  union  shall  not  encroach  upon  the  work  of  another.  In  as 
simple  a  matter  as  printing  the  names  of  individual  firms  on  catalogue 
covers,  where  the  imprints  are  all  set  up  in  slugs,  after  each  imprint  is 
run  off,  the  pressroom  workers  have  been  known  to  insist  that  a  com- 
positor be  brought  from  the  composing  room  to  make  the  change  to  the 
next  imprint,  while  they  stand  idly  by.  In  a  case  of  this  kind,  where  the 
runs  are  short,  it  amounts  practically  to  requiring  two  persons  to  do  the 
work  of  one.  Similarly  with  paper  handlers,  sheet  straighteners,  feeders 
and  pressmen,  it  is  not  at  all  uncommon  to  be  forced  to  have  men  from 


198 


WASTE  IN  INDUSTRY 


several  different  unions  participate  in  a  simple  piece  of  work  which  could 
be  performed  more  easily  and  economically  by  one  person. 

The  disadvantage  of  extreme  craft  distinctions  is  far  greater  then  is 
immediately  apparent.  They  very  greatly  increase  the  amount  of  super- 
vision necessary,  entail  wastage  of  time  in  going  and  coming  from  the 
different  tasks,  and  make  the  labor  force  inflexible  and  difficult  of  adjust- 
ment within  one  plant.  There  is  probably  no  one  thing  so  important 
in  the  elimination  of  waste  in  productive  labor  as  that  it  shall  be  flexible; 
that  is,  that  each  person  shall  be  capable  of  performing  more  than  one 
service.  When  the  limits  of  labor  which  each  group  performs  arc  narrowly 
defined,  any  variation  in  the  character  of  work  easily  throws  the  supply 


=5     E     2 
FIG.  4. — Discrepancy  between  Production  and  Billing  Within  the  Same  Establishment. 

of  labor  out  of  balance.  A  plant  is  frequently  "firing"  people  from  one 
department,  and  hiring  them  for  another  at  the  same  time.  One  plant 
employing  an  average  of  2,000  people,  goes  up  to  2,700  in  rush  seasons 
and  drops  to  1,500  in  dull.  Another  plant  employing  from  700  to  1,800 
lays  off  1,100  employees  twice  a  year,  for  periods  of  three  months  each, 
because,  of  "unbalanced  producion." 

A  large  non-union  printer  who  has  exceptional  conditions  throughout 
his  plant,  states  that  the  greatest  help  toward  keeping  his  workers  con- 
stantly employed  without  undue  cost  is  his  ability  to  shift  them  from 
one  task  to  another.  He  says  that  during  the  present  depression  it  is 
by  no  means  uncommon  to  find  a  compositor  in  the  press  room  or  the 
bindery.  For  short  periods  he  frequently  disjoints  the  entire  organi- 
zation of  his  employees.  It  is  not  to  the  interest  of  either  employer  or 


THE  PRINTING  INDUSTRY  199 

employee  that  men  should  do  work  other  than  that  for  which  they  are 
best  equipped,  but  for  economy  of  production  and  regularity  of  employ- 
ment, it  is  sometimes  essential. 

In  manning  machines,  the  unions  require  a  certain  number  of  men  on 
each  machine,  regardless  of  the  work  performed.  The  number  of  press 
tenders  in  a  press  room  with  a  number  of  automatically  fed  presses  are 
prescribed  on  the  basis  of  the  number  of  presses  rather  than  on  the 
amount  of  work  being  done.  In  some  cases  an  effort  is  even  made  to 
demand  that  a  pressman  shall  limit  his  work  to  one  or  two  presses.  A 
printer  doing  a  large  amount  of  periodical  work  says  that  he  has  reduced 
the  makeready  on  a  web  press  from  three  days  to  one  by  shifting  a 
special  makeready  crew  from  press  to  press. 

Compositors  have  ruled  that  all  advertising  matter  coming  into  the 
office  in  electrotype  form,  must  be  reset  in  type  in  each  printing  office  in 
which  the  advertisement  is  used.  They  permit  the  use  of  the  electro- 
type, but  insist  upon  setting  and  redistributing  the  type  to  secure  the 
hours  of  work  involved,  sometimes  doing  it  even  weeks  after  the  adver- 
tisement has  appeared  in  the  newspaper. 

The  localizing  of  authority  and  vesting  certain  functions  in  the  fore- 
man, insisted  upon  by  the  unions,  makes  the  installation  of  proper  co-or- 
dination and  management  methods  very  difficult.  These  restrictions  by 
the  union  made  it  necessary  to  abandon  the  installation  of  modern 
methods  in  a  New  York  City  plant  after  the  work  was  already  well 
advanced.  A  certain  amount  of  routine  handling  of  copy  and  issuing  of 
instructions  is  essential  to  control  and  routing,  and  when  the  unions 
insist  that  this  must  be  done  by  foremen,  or  full  paid  journeymen,  it  makes 
the  cost  prohibitive,  and  the  work  itself  cumbersome. 

While  these  restrictions  are  not  always  insisted  upon,  they  are  con- 
stantly reverted  to,  and  hang  over  the  head  of  any  employer  who  attempts 
to  obtain  increased  production.  They  are  largely  protective,  necessary 
to  the  unions  as  a  basis  of  trading.  The  most  irksome  phases  of  many 
of  them  are  rendered  ineffective  when  the  workers  in  a  shop  feel  full  con- 
fidence in  the  attitude  of  their  employer  toward  the  union.  Yet  so  long 
as  these  and  innumerable  other  similar  measures  exist  and  are  tolerated, 
they  stand  in  the  way  of  organized  elimination  of  waste  within  the 
industry. 

Dual  Responsibility. — I  am  not  unmindful  of  labor's  position  in  this 
matter.  I  fully  appreciate  and  wish  to  emphasize  the  fact  that  no  device 
used  by  labor  to  maintain  itself  is  any  worse  than  the  devices  used  by 
the  employing  printer  to  protect  not  only  his  position  with  labor,  but 
also  his  competitive  position. 

We  must  face  the  fact  that  industry  is  ruled  by  competition,  supply 
and  demand  and  the  survival  of  the  fittest.  An  argument  based  on  any- 


200  WASTE  IN  INDUSTRY 

thing  other  than  these  principles  is  mere  camouflage.  I  do  not  lose  sight 
of  labor's  right  to  object  to  its  service  being  regarded  as  a  commodity. 
This  is  a  natural  and  legitimate  objection  on  its  part.  On  the  other  hand, 
it  must  recognize  that  however  vital  the  distinction  between  labor  and 
a  commodity  may  be,  none  the  less  labor  is  ruled  and  governed  by  the 
same  three  principles,  and  this  applies  not  only  to  manual,  but  also  to 
professional  and  clerical  work.  Many  of  the  abuses  on  both  sides  were  an 
inevitable  by-product  of  the  process  of  evolution  to  our  present  state. 

Industrial  Suicide. — An  officer  of  the  Typothetae  states  that  a  survey 
of  2,000  printing  plants  made  in  1920  shows  that  there  is  but  one  appren- 
tice to  every  ten  journeymen,  whereas  even  the  union  requirements  only 
held  it  down  to  one  to  five  on  the  average.  It  is  the  opinion  of  those  making 
the  survey  that  even  if  there  were  an  immediate  change  of  policy,  it 
would  take  30  or  50  years  to  replace  an  adequate  supply  of  trained  help. 
He  sums  up  this  failure  to  provide  for  the  future  with  the  words,  "  the 
industry  is  committing  industrial  suicide." 

If  the  statement  can  be  taken  at  its  face  value,  or  even  with  a  con- 
siderable modification,  the  printing  unions  have  nothing  to  fear  through 
increased  production,  whatever  the  situation  may  be  in  other  industries. 
Except  for  the  strategic  value  of  these  limitations  as  points  to  trade  on 
in  gaining  concessions,  there  can  be  no  possible  justification  for  these 
prohibitions. 

I  am  in  sympathy  with  labor  in  insisting  upon  and  gaining  as  rapidly 
as  possible,  short  hours,  improved  working  conditions  and  the  best  pay 
obtainable.  I  see  no  reason  why  they  should  not  adapt  to  their  pur- 
poses every  means  that  the  employer  uses  in  building  up  a  competency, 
enabling  him  to  work  less  intensively,  improving  his  living  conditions, 
raising  his  social  status  and  even  in  amassing  a  reasonable  fortune.  I 
do,  however,  criticise  some  of  the  methods  resorted  to  in  the  printing 
industry  by  both  sides.  As  I  deplore  the  profiteering  which  has  existed 
during  the  last  few  years,  and  the  distortion  of  the  law  of  supply  and 
demand,  so  I  deplore  the  curtailment  of  output  to  which  labor  has  undoubt- 
edly resorted. 

Concretely,  my  recommendation  is  that  the  printing  unions  should 
insist  upon  reasonable  hours  and  the  best  pay  obtainable,  but  that  they 
should  also  co-operate  and  even  be  aggressive  in  insisting  upon  the  deter- 
mination and  use  of  production  standards  in  appraising  their  service, 
and  that  they  should  lend  themselves  to  the  greatest  possible  flexibility 
in.  the  utilization  and  economy  of  the  service  of  their  membership.  It  is 
distinctly  to  labor's  interest  rather  than  to  its  detriment  that  its  service 
should  not  only  be  as  effective  as  possible,  but  also  be  definitely  recorded 
and  understood. 


THE  PRINTING  INDUSTRY  201 


SUMMARY   OF  RECOMMENDATIONS 

To  the  Manager  of  an  Individual  Plant. — 

That  the  large  establishments  develop  a  conscious  technique  of  management, 
including  the  development  and  use  of  production  quotas. 

To  Managers  of  the  Industry  as  a  Whole. — 

1.  That  the  United  Typothetae  of  America  undertake  the  development  of  pro- 
duction quotas  for  the  benefit  of  the  smaller  printers  along  the  line  of  its 
present  work  in  cost  keeping. 

2.  That  the  printing  and  allied  trades,  including  the  National  Association  of 
Purchasing  Agents,  in  joint  action: 

(a)  Develop  and  adhere  to  co-ordinated  standards  for  printing  prod- 
ucts, materials  and  machine  equipment. 

(?>)  Conduct  a  publicity  campaign  for  the  education  of  the  buyers  of 
printing  as  to  what  the  standards  affecting  them  are,  and  the  advan- 
tage to  them  in  their  use. 

To  Labor.— 

1.  That  labor  individually  and  collectively  advocate  and  co-operate  with  the 
employing  printer  in  the  establishment  of  production  quotas. 

2.  That  through  the  Industrial  Relations  Department  of  the  United  Typothetae 
and  through  the  International  Joint  Conference  Council: 

(a)  Co-operate  in  the  elimination  of  restrictions  affecting  output. 
(6)  Urge  the  use  of  employees  within  one  establishment  for  more  than 
one  class  of  work. 

To  the  Department  of  Commerce. — That  it  co-operate  with  and  sup- 
port the  printing  and  allied  trades  in  bringing  about  joint  conferences, 
and  in  conducting  a  publicity  campaign  for  the  education  of  buyers  as 
to  standards  determined  upon,  and  the  advantages  to  be  gained  through 
their  use. 

While  it  is  never  possible  to  predict  in  figures  the  savings  to  be  made 
by  application  throughout  an  industry  of  recommended  changes,  it  may 
be  said  that  the  cost  of  printing  to  the  ultimate  consumer  could  be  reduced 
on  the  average  at  least  one-third,  if: 

1.  Newspapers,  periodicals,  books  and  catalogues  were  held  within  a  reasonable 
number  of  physical  variations. 

2.  There  were  a  common-sense  limitation  of  sizes  of  printed  forms  so  that  they 
might  all  be  cut  from  a  limited  number  of  paper  sizes. 

3.  The  printing  machinery  and  paper  industries  took  advantage  of  this  standard- 
ization to  obtain  more  continuous  production  and  smaller  stocks. 

4.  The  printer  took  advantage  of  this  standardization  to  eliminate  over-equip- 
ment, and  to  use  his  equipment  throughout  its  normal  life. 

5.  The  printer  adopted  production  standards  for  his  own  work,  and  recognized 
and  used  the  methods  already  demonstrated  in  a  few  cases. 


202  WASTE  IN  INDUSTRY 

The  degree  to  which  this  saving  will  be  made  effective  depends  upon 
the  extent  to  which  the  printer  and  paper  and  printing  machinery  manu- 
facturers co-operate  for  the  purpose  of  making  an  ultimate  saving  to  the 
consumer,  as  distinguished  from  a  selfish  saving  to  themselves. 

Individual  efforts  to  eliminate  waste  have  proven  impotent  except  for 
the  individual  pocket-book.  Co-operative  effort  to  eliminate  the  use- 
less waste  of  an  individualistic  industrialism  is  the  need  of  the  hour,  and 
is  the  theme  of  this  report. 

JOHN  H.  WILLIAMS. 


THE  PRINTING  INDUSTRY 


203 


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WASTE  IN  INDUSTRY 


FIELD    REPORT    EVALUATION 

AMERICAN    ENGINEERING    COUNCIL 
OF 
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zfc-§ 

_9 

10 

30 

Si-s 

10 

60 

2ff 

01 

40 

20 

<°i 

IS 

0 

0 

N  ai    § 

<  14 

0 

0 

-^.s- 

<  15 

0 

0 

zS.fi 

CI6 

40 

0 

<v2>ls 

<  17 

0 

0 

o-£  " 

as 

0 

Q 

te.  °  i1 

<.  19 

0 

0 

0  ?l 

<20 

40 

1| 

KZ\ 

4.0 

40 

13 

0.5 

TO 

0 

0 

1.0 

0.5 

iS 

7.0 

50 

50 

1.0 

2.0 

.0 

cZ  s 

i  | 

3C  "^ 

TOTAL 

10.0 

1.4 

16.0 

0.5 

9.0 

5.8 

0.35.0 

e  1.1 

CAL 

ng  Knowledge 
and  Materials 

Tl 

3.0 

0 

0 

0 

3.0 

0 

TZ 

2.0 

10 

10 

0.2 

'.  0 

~J 

0 

0 

2.0 

40 

40 

0.8 

S.O 

.0 

TJ 

?.o 

10 

10 

0.2 

3.0 

40 

40 

1.2 

5.0 

1.4 

T4- 

1.0 

10 

10 

0.2 

1.0 

0 

0 

0 

3.0 

20 

20 

0.6 

5.0 

o.t 

TS 

1.0 

30 

30 

0.3 

1.0 

0 

0 

O.J 

T6 

TECHNI 

Available  Engineer 

"7 

3-0 

40 

40 

1.2 

l?.0 

80 

80 

9.6 

15.0 

10.8 

TOTAL 

12.0 

J.\ 

3.0 

0.0 

?0.0 

I2.J 

b  ,  5  : 

•f    43 

I 

Ul 

2.8 

60 

60 

I.S 

2.8 

I.S 

U2. 

0.5 

80 

80 

O.J 

?.5 

80 

80 

2.0 

3.0 

2 

U5 

1.2 

>0 

30 

0.4 

0 

.2 
5.2 

-^  

1  ON 

edge  and  Organi 
g  Factors 

U6 

0.1 

0 

0 

0 

0.6 
I.Z 

0 
0 

0 
0 

1.2 
1.9 

U7 

1.5 

40 

40 

0.6 

.5 

0.  i 

U8 

Lt 

60 

60 

1.0 

0 

0 

Z2 

C 

U9 

1.2 

0 

0 

o 

a 

0 

0 

J.I 

UIO 

2.0 

0 

0 

?.o 

U   1 

1.0 

10 

10 

O.I 

2.5 

80 

60 

2.0 

3.5 

t 

<<S"S 

U  3- 

0.5 

30 

30 

o.z 

O.S 

(.2 

UI4 

UTILI2 

Effectiveness  of  Technics 
Direction,  Control  and  Acco 

U  5 

0.5 

40 

40 

0^ 

0.5 

0.2 

UI6 

L    7 

UI8 

0.5 

.40 

40 

0.2 

0.5 

0 

0 

0 

1.0 

0.2 

TOTAL 

16.6 

4  5 

?.4 

0 

5.0 

C  '•"'.'.' 

9|e.5 

6RAND  TOTAL 

31.6 

8.0 

??.4 

0.5 

34.0 

22.0 

A  100 

h[jo.s 

THE  PRINTING  INDUSTRY 


205 


FIELD     R  EPORT   EVALUATION 

OF 

INDUSTRY/y/nft>79              PLANT  NO.  4QB                        EST.BYC.i.fl.                                        DATEJ//7/<?/ 

>-    ©  +  ©  +  ®  =  ®   Excellent  =0%Waste         P0gr  -6 

s®*®+®-®?£d    :%:;     **-* 

)°lo  Waste                  a  +  b+c  -d  "  100 

b 

Waste 

CAUSES 

Guide 
Questions 
for 
Field 
Invest!  - 

RESPONSIBILITIES 

T01ALWASTE 

MANAGEntNT 

LABOR 

Points 
Waste 

Assigned 
Points 

Est.°lo 
Waste 

Points 
Waste 

%& 

Est.°lo 
Waste 

Points 
Waste 

tesigtied 
Points 

Est.°lo 
Waste 

Points 
Waste 

Points 

l'| 

40 

K? 

60 

80 

40 

K3 

50 

80 

80 

K5 

4.0 

80 

62 

?.G 

20 

80 

80 

1.6 

4.0 

40 

U 

10.0 

5.8 

II 

Z    g.? 
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£•§•£ 

1.0 

80 

0.8 

To~ 

80 

80 

4.0 

6.0 

48 

K8 

10 

80 

9 

60 

20 

10 

20 

II 

60 

?0 

12 

1.0 

50 

36 

0.4 

?.o 

30 

" 

0.5 

3.0 

60 

10 

2.1 

6.0 

vo 

0  R  G  A  N  11  A 

Mechanism  of  Industry  asto  Type,  Metric 
Assignment  and  Discharge  of  Responsib 

O3 

40 

80 

14 

40 

60 

15 

60 

1C 

60 

q 

o 

40 

KI8 

0 

50 

80 

K20 

-5 

K2I 

4.0 

50 

10 

1.2 

1.0 

51 

4.0 

11.0 

5.Z 

^.o 

50 

50 

1.0 

?.o 

1.0 

TOTAL 

10.0 

s.o 

16.0 

10.  1. 

9.0 

W 

a  35.0 

e  19.8 

f| 
11 

"1 

1.0 

50 

50 

1  5 

i-O 

1.5 

T? 

2.0 

80 

80 

1.6 

1.0 

20 

20 

0.2 

2.0 

10 

10 

0.2 

5.0 

20 

T3 

?.o 

20 

20 

3.0 

20 

20 

0.6 

5.0 

1.0 

:{! 
IH 

Ti  —  ~ 

1.0 

30 

30 

0.3 

1.0 

80 

80 

0.8 



_60_ 

?.o 

3;, 

T6 

TT 

30 

50 

50 

15 

12.0 

80 

80 

9.6 

15.0 

1.  1 

w  "-5 

H  •§£ 

if 

4S 

TOTAL 

l?.0 

5.9 

3.0 

1.8 

20.0 

n.i 

b;35.C 

f   19.9 

U 

tl 

80 

80 

2.2 

2.8 

J.Z 

uz 

50 

50 

0.1 

2.5 

50 

50 

0.8 

30 

I 

U  3 
U4 

U 

80 

80 

1.0 

80 

—  —  — 

J.i 

2 

1.0 
4.2 

I 

U6 

0.1 

60 

60 

80 
80 

80 
80 

0.5 

2 
9 

& 

Ul 

10 

S 

,1 

•°   £ 

U8 

12 

80 

80 

1.0 

1.0 

80 

80 

0.8 

2 

1.8 

Z   §  £ 

U9 

LJ 

60 

60 

0.1 

I.S 

80 

80 

1-2 

.7 

.9 

0   £° 

UIO 

2-0 

10 

10 

1.4 

JO 

4 

U 

1.0 

10 

10 

0.1 

?.S 

SO 

60 

1-5 

3.5 

2.2 

»-i  ? 

UI2 

0.8 

60 

60 

0.5 

0.8 

0.5 

<  ri 

U  J 

0.5 

80 

80 

0.4 

OS 

OA 

5    3 

UI4 

80 

N    0    S 

L  IS 

0.5 

10 

15 

0.4 

0.5 

0.4 

-|$ 

UI6 

6-0 

SO 

-1? 

\ID 

80 

80 

^0 

Uj8 

0.5 

10 

0.4 

0.5 

10 

0.4 

1.0 

0.8 

a  °E 

3  «t 

£(S 

£  c 

TOTAL 

15.6 

11.5 

9.4 

T4. 

5.0 

?.J 

CJ  30.0 

g  21.2 

GRAND  TOTAL 

31.6 

HA 

t8A 

19.3 

34.0 

19.2 

n 

h  so.9 

206 


WASTE  IN  INDUSTRY 


FIELD     REPORT  EVALUATION 

OF 

INDUSTRY  Printing              PLANT  NO.J  MOLD             EST.BYC.i.5.                                          DATE.?//*?/?/ 

X®  + 
"    ®  + 

(D  +  ®  -<§)  Excellent  -OloWaste         Poor  -60%  Waste                    a  +  b  +-C  -d  =  100°lo 
®  i-  ®  -  ®  FaTr"        *wi:    :            »«<«  =  8°01°    "                       «  +  f  ^9  -h  -  "IcWaste 

CAUSES 

Guide 
Questions 

Rl 

.SPONSIfll  LITI 

s 

TOTAL  WASTE 

for 
Field 
Investi- 

Assigned 
Points 
—  

Es 
Wa 

°lo 
ite 

Points 
Waste 

Points 

Est°lo 
V*aste 

Points 
Waste 

tesjgned 
Points 

Est 
Wo« 

°lo 
te 

Points 
Waste 

togned 
Points 

Points 
Waste 

! 

Kl 

40 

K3 

50 

il 

§§ 

K5 
K6 

4.0 

BO 
SO 

54 

y 

to 

80 

80 

1.6 

4.0 

80 

3.2 

10.0 

T.O 

1  ON 

(Paperwork 
y  and  Relat 

Kl 
K8 

I.U 

10 

80 

6.0 

46 

K9 

80 

50 

K10 
Kll 

0 
»0 

50 

DRGANIIAT 

stry  as  toType,  Methods 
charge  of  Responsibilil 

Kfi 

KI3 

1.0 

HO 

fi 

_06_ 

?.o 

40 
80 

46 

0.9 

3-° 

80 

80 

*.4 

6.0 

3.9 

KM 

40 

40 

KI5 

50 

40 

KIT 

80 

KI8 

80 

KI9 

60 

80 

K?0 

5 

Mechanism  of  Indu 
Assignment  and  Di< 

Jill  

—  — 

7.0 

SO 

60 

U 

2.0 

5'9 
tj 

TOTAL 

10.0 

4-8 

16.0 

II.  0 

9-0 

6.3 

C,|J5.0 

e|t?.6 

T  E  CH  N  1  C  A-L 

Available  Engineering  Knowledge 
as  to  Product,  Plant  and  Materials 

Tl 

3.0 

20 

2o 

06 

5.0 

•o.s 

T? 

?-0 

40 

40 

0.8 

1.0 

40 

40 

0.4 

tOj 

2.0 

20 

0.4 

5.0 

1-6 

T3 

?.o 

50 

50 

1.0 

3.0 

80 

80 

2.4 

5.0 

3  4 

T4 

1.0 

50 

50 

0.5 

1.0 

80 

80 

0.8 

3.0 

60 

80 

?.4 

s.o 

u 

T5 

1.0 

4C 

40 

04 

1.0 

50 

50 

05 

2.0 

T6 

TT 

3-0 

60 

60 

1.8 

12.0 

80 

80 

9.6 

15.0 

11.4 

TOTAL 

ItO 

5.1 

3.0 

1.1 

ZO.O 

14.8 

b  -! 

f\^ 

UTILIZATI  ON 

Effectiveness  of  Technical  Knowledge  and  Organisation. 
Direction,  Control  and  Accounting  Factors- 

Ul 

?.8 

80 

80 

Z.I 

2.8 

I.J 

U2 

0.5 

80 

80 

0.4 

2.5 

&0 

80 

2.0 

i.O 

?.4 

U3 

I.Z 

TO 

TO 

0.8 

IJ 

0.3 

U4 

?.t 

TO 

TO 

1.8 

?-6 

80 

80 

?.| 

5.? 

19 

US 

0.6 

TO 

10 

0.4 

as 

80 

80 

0.5 

U 

0.9 

U6 

O.T 

60 

60 

0.4 

I.Z 

80 

80 

10 

1.3 

1.4 

LIT 

1.5 

40 

40 

0.6 

1.5 

0.6 

U8 

I.Z 

TO 

TO 

0.8 

1.0 

80 

80 

0.8 

2.2 

i.e. 

U9 

1.2 

80 

'" 

l.O 

1.5 

80 

80 

1.2 

:  - 

Z.I 

mo 

?.o 

TO 

TO 

1.4 

?-0 

1.4- 

mi 

1.0 

TO 

10 

O.T 

2.5 

80 

80 

2.0 

3.5 

•e.T 

UI2 

0.8 

40 

40 

03 

0.8 

0.3 

yg 

0.5 

JO 

30 

02 

0.2 

UI4 

40 

UI5 

05 

60 

50 

0.3 

0.5 

0.1 

IM6 

50 

50 

un 

80 

80 

UI8 

0.5 

65 

O.J 

0.5 

65 

0.3 

1-0 

0.6 

TOTAL 

15.6 

r:  : 

9.4 

T3 

5.0 

4.0 

C   30.0 

9*1.5 

GRAND  TOTAL 

V1.& 

zo.i 

U8.4 

zo.o 

34.0 

Z5.6 

d  100 

h]65.7 

THE  PRINTING  INDUSTRY 


207 


FIELD    REPORT    EVALUATION 

AMER  CAN   ENGINEERING   COUNCIL 

OF 

THE     FEDERATED    AMERICAN     ENGINEERING    SOC   ETIES 

INDUSTRY  Printing              PLANT  NO.  2-  DLMK                  EST.  BY  C/.6.                                          DATE  3/2  //?! 

>!©  +  ®  +  ®-®   Exc«llent=  0%Waste      Poor  .60%  Waste                      a  +  b+  C-  d-100% 

!®IS±SIej*r    :SS5'wf    ^  -»*  »           e+^g-h-%waste 

M 

W 

! 

Guide 

RESPONSIBILITIES 

TOTAL  WASTE- 

for 

MANAGEMEh 

LABOR 

IDE   CONTAC 

Poinh 
Waste 

Field  . 

ssigned 

Points 

Est 

/» 
ste 

—3  —  i 

Points 
Waste 

4  - 

Points 

—5  — 

Waste       |Woste 
—  6  —  1  —  '  r~a  — 

Points 
—  9  —  ' 

Est.  % 
Waste 

~io  —  r~n  — 

Points 
Waste 

~iz  — 

Poinb 

and  Personnel, 
lonship. 

(2 

4-0 

80 

80 

3 

SO 

4. 

60 

80 

1.6 

5 

4.0 

80 

56 

2.2 

2.0 

90 

4.0 

80 

3-2. 

10.0 

7.0 

jS 

80 

80 

80 

- 

7 

I  0 

80 

0.8 

5.0 

80 

6-0 

48 

3Z 

g 

80 

80 

(.9 

80 

SO 

1  Z  ATI  Ot 

,Methods(pap 
sponsibility  ar 

_  10 

0 

C  H 

BO 

64 

0.6 

50 

JS 

40 

64- 

0.6 

7.0 

50 

SO 

1.0 

30 

80 

80 

24 

6.0 

40 

(13 

40 

80 

'A 

40 

40 

15 

SO 

ORGAN 

Mechanism  of  Industry  as  to  Type 
Assignment  and  Discharge  of  Re 

16 

40 

<  17 

80 

10 

80 

•\  i? 

80 

80 

<ZO 

5 

21 

4.0 

;• 

45 

1.8 

7.0 

64 

4.5 

II.O 

6.3 

20 

60 

60 

1-2 

2.0 

12 

TOTAL 

10.0 

5.4 

160 

ll.l 

9.0 

6.8 

a[350 

e|z33 

TECHNICAL 

Available  Engineering  Knowledge 
as  to  Product,  Plant  and  Materials 

~  \ 

3.0 

: 

50 

1. 

30!      15 

TE 

20 

40 

40 

0.  i 

1-0 

40 

40 

0.4 

2.0 

<• 

20 

04 

5.0 

i  6 

'   5 

10 

40 

0. 

30 

80 

30 

2.4 

5.0 

32 

T4 

10 

30 

30 

o 

1.0 

10 

70 

0.7 

3.0 

80 

80 

2.4 

5.0    I     3.4 

-5 

a 

40 

40 

0.' 

50 

50 

0.5 

2.0    !     0.9 

'  6 

T7 

30 

80 

80 

2.4 

12.0 

80 

80 

9.6 

15.0        20 

TOTAL 

12.0 

6.2 

3.0 

1.6 

20.0 

14.8 

bJ350 

f   226 

ZAT  1  0  N 

il  Knowledge  and  Organization, 
ounting  Factors 

I 

2.8 

80 

80 

2.Z. 

28 

22 

£ 

05 

70 

-;• 

0 

2.5 

80 

80 

2.0 

3.0 

2.4 

3 

12 

80 

80 

I. 

1.2 

1.0 

4 

Z.* 

60 

60 

I. 

:  ; 

80 

80 

21 

52 

36 

5 

0.6 

60 

60 

0.' 

06 

80 

80 

OS 

I.Z 

09 

£ 

0-7 

40 

40 

0. 

1.2 

70 

70 

0.8 

1.9 

I.I 

7 

1.5 

50 

50 

0. 

15 

0.8 

8 

1.2 

80 

80 

1.  ) 

1.0 

80 

80 

0.9 

2.2 

1-8 

9 

1.2 

80 

80 

1. 

[.5 

80 

80 

1.2 

2.7 

2.2 

10 

2.0 

60 

60 

1.2 

2.0 

.2 

II 

1-0 

CO 

60 

0.6 

2.5 

80 

80 

2.0 

35 

2.6 

I  12 

0.8 

40 

40 

0.3 

0.8 

fr3 

3 

0.5 

40 

46 

o.z 

0-5 

0-2 

14 

40 

UT  1  LI 

Effectiveness  of  Technic 
Direction,  Control  and  Ac 

16 

60 

60 

j  17 

80 

80 

Id 

05 

70 

0.4 

OS 

70 

0.4 

1-0 

.0.8. 

TOTAL 

15.6 

10.4 

94 

7.0 

5.0 

4-0 

C|30-0 

9  ;  " 

GRAND  TOTAL 

37.6 

2ZO 

28-4 

19  7 

34.0 

25.6 

dj  100.0 

h  6" 

208 


WASTE  IN  INDUSTRY 


FIELD    REPORT    EVALUATION 

COMMITTEE   ON     ELIMINATION    OF   WASTE    IN     INDUSTRY 

OP 
THE     FEDERATED    AMERICAN     ENGINEERING    SOC 

ETIES 

INDUSTRY  Pnn-ting        PLAMTNO.  /  DV.                EST.BY  C.L.B.                           DATEJ//*/*/ 

>  ©  + 

*     ©4- 

®  *  (D  -  ®  Exce  llent-  Ojo  Waste     poor  .  6o%Waste                    a  +  b+  C-  d-  100  % 

CAUSES 

6uide" 
Msfim 

R  I 

SPONSIB  I  LI  TIE 

S 

TOTAL  WASTE 

for 
Field, 
nvesti- 

Unta 

Est.% 
Waste 

Points 

taste 

si  :-?i 
Points 

Ejt.% 
Waste 

Points 

1 

Est.% 
Waste 

"omts 
Waste 

Asigna 
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Points 
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Waste 

gator 

Kl 

40 

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K.Z 

20 

80 

40 

0 

K5 

40 

S   £ 

K4 

80 

80 

K5 

40 

80 

52 

2.1 

2.0 

80 

80 

1.6 

40 

40 

1.6 

10.0 

5.3 

1| 

K6 

80 

80 

K7 

1.0 

80 

c  ; 

5.0 

80 

80 

; 

6.0 

4.8 

«      (5 

K8 

80 

80 

Zfc  "i 

K9 

60 

30 

2*5 

KIO 

40 

35 

y-Z'-z 

KIZ 

1.0 

60 

48 

0.5 

2.0 

40 

35 

0.7 

3.0 

80 

80 

2.4 

60 

3.6 

0  R  6  AN  IZA 

Mechanism  of  Industry  asto  Type,Metho 
Assignment  and  Discharge  of  Responsi 

K  13 

40 

80 

KI4 

40 

40 

K\5 

50 

40 

Kn 

80 

K  18 

80 

K  19 

8C 

80 

K  20 

S 

-  c- 

4.0 

60 

44 

.8 

7.0 

64 

45 

11.0 

6.3 

2.0 

60 

1.2 

20 

U 

TOTAL 

10.0 

5.2 

16.0 

;  = 

9.0 

5.1 

a  •• 

6   ;    : 

f| 

•*  f* 

3  0 

;c 

20 

0.6 

3.0 

0.6 

TZ 

2.0 

40 

40 

08 

10 

40 

40 

.. 

20 

10 
80 

10 

0.2 
i.4 

50 

.4 

-H- 

IHNICAL 

ng  inter  ingKnc 
t,PlantandM< 

5 
6 

,.0 

20 

20 

_J:°... 

40 

•  : 

-^- 

0.6 

T7 

30 

80 

80 

2.4 

12.0 

80 

80 

9.6, 

15-0 

12.0 

TE( 

Available  E 
asto  Produ 

TOTAL 

12.0 

0 

- 

1.5 

.      ' 

,:  . 

b  35.0 

f  2U 

TIU2ATION 

Technical  Knowledge  and  Organization, 
and  Accounting  Factors 

1 

2.8 

80 

80 

2-8 

ue 

0-5 

80 

80 

_ 
4 

25 

80 

80 

20 

3.0 

JS 

I.Z 

50 

50 

.6 

1.2, 

U4 

2.6 

60 

60 

9 

2.6 

80 

80 

2.1 

5.2. 

us 

0.6 

60 

60 

(.4 

0.6 

80 

80 

0.5 

I-Z 

U6 

0.1 

40 

40 

i.3 

: 

80 

80 

1-0 

1.9 

U7 

1.5 

40 

40 

.6 

1.5 

U8 

1.2, 

50 

50 

(  .6 

' 

80 

80 

08 

i.i 

19 

Lt 

80 

80 

.0 

1.5 

80 

80 

1-2. 

UK) 

2-0 

60 

60 

1-2 

2.0 

L  II 

1.0 

50 

50 

.5 

2.5 

80 

80 

2.0 

3.5 

uc 

0.8 

30 

30 

.1 

0.8 

UI3 

0.5 

40 

40 

I 

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209 


CHAPTER  IX 
THE  METAL  TRADES  INDUSTRY 

BY  FRED  J.  MILLER  ASSISTED  BY  WILLIAM  B.  FERGUSON 

Possible  Increased  Production. — Study  of  the  Metal  Trades  Industry 
and  comparison  of  the  factors  of  waste,  or  causes  of  non-production  in 
various  representative  plants  in  that  industry,  lead  to  the  conclusion 
that,  at  a  conservative  estimate,  the  value  of  increased  production 
possible  in  the  United  States  would  be  over  half  a  billion  dollars  annually 
— even  in  normal  times. 

At  the  present  time,  due  to  the  large  unemployment  of  available  men 
and  machinery,  the  waste  is  nearer  to  a  billion  dollars  a  year.  This 
estimate  covers  the  value  of  labor  only  and  does  not  include  the  value  of 
materials  that  would  be  utilized  if  the  productivity  of  labor  were 
increased. 

Views  of  Executives  in  the  Industry. — Before  giving  conclusions  as 
to  the  major  causes  of  the  above  mentioned  waste,  we  present  the  views 
of  some  of  the  managing  executives  themselves  in  thirty-two  of  the  plants 
visited.  Being  asked  their  opinion  as  to  the  main  cause  of  waste  or 
inefficiency  their  answers  were  as  follows: 

In  eight  plants  the  answer  referred  particularly  to  present  business 
conditions  and  was  to  the  effect  that  "  the  most  important  cause  is  the 
uneven  volume  of  business  or  the  fluctuation  in  the  demand  for  the 
product;  lack  of  enough  business  to  keep  going  at  normal  capacity." 

In  four  plants  the  cause  given  concerned  the  railroad  situation  and 
the  functioning  of  the  Railroad  Adjustment  Board. 

In  three  plants  the  cause  given  was  "  lack  of  standardization  of  design 
of  products." 

In  two  plants  the  cause  given  was  "  labor  turnover  and  strikes,"  one 
executive  saying  that  these  had  been  caused  by  wartime  conditions. 

In  four  plants  the  cause  given  was  "  lack  of  planning  " — the  exact 
words  used  being  "lack  of  proper  planning  and  routing";  "lack  of 
correct  planning  and  material  control";  "unscientific  planning  and 
management ",  and  "  lack  of  efficient  planning  and  management 
methods." 

In  six  plants  the  cause  given  was  "lack  of  co-operation  between 
management  and  labor." 

210 


THE  METAL  TRADES  INDUSTRY  211 

Other  causes  given  in  various  plants  were  as  follows:  "  lack  of  inten- 
sive study  of  methods  ";  "  cost  control  systems  needed  ";  "  daily  cost 
reports  needed";  "lack  of  scientific  management  applied  to  all  phases 
of  the  business  " ;  "  inefficiency  of  labor  and  excessive  overhead." 

In  other  plants  special  causes  in  the  machine  tool  business  were  given 
as  follows: 

(1)  "  The  failure  of  machine  tool  builders  to  supply  what  the  public  wants." 

(2)  "  Most  of  the  metal  trades  shops  are  very  small  and  require  personal  handling 

by  the  manager  of  such  important  problems  as  are  handled  by  our  system 
of  production  control." 

(3)  "  Insufficient  capital  to  develop  sales  and  to  improve  facilities." 

(4)  "  Purchasing  in  small  quantities,  by  the  small  plants,  which  places  them  at  a 

disadvantage  as  to  favorable  prices  and  as  to  transportation  and  handling 
expense." 

Present  Unemployment. — The  major  cause  of  waste  or  non-pro- 
duction in  the  metal  trades  industry  at  the  present  time  is  the  unem- 
ployment of  available  labor  and  equipment,  due  to  general  business 
conditions,  which  affect  all  other  industries.  The  U.  S.  Department  of 
Labor,  Bureau  of  Labor  Statistics,  reports  on  a  survey  of  1,423  firms  in 
the  metal  trades  industry  employing  1,643,253  men,  that  the  decreases 
in  the  number  on  the  payroll  from  February,  1920  to  February,  1921 
were  24.2%  in  the  iron  and  steel  industry,  42.3%  in  the  automobile 
industry,  and  16.6%  in  the  car  building  and  repairing  industry.  The 
Employers'  Association  of  Detroit  reports  on  March  10,  1921  that 
79  shops  were  employing  67,137  hands  compared  to  198,705  employed 
on  April  7,  1920.  In  Philadelphia,  out  of  the  150,000  hands  employed 
in  the  metal  trades  in  July  1920,  about  30,000  were  out  of  work  on 
March  1,  1921. 

The  present  industrial  conditions  in  the  United  States  and  abroad 
affect  the  metal  trades  very  seriously  and  the  industry  as  a  whole  is 
operating  at  only  about  60%  of  normal  output.  Manufacturers  can 
undoubtedly  hasten  a  return  to  normal  conditions  by  producing  goods 
as  economically  as  possible,  thus  being  able  to  make  selling  prices  low 
enough  to  be  attractive  to  buyers. 

Extent  of  the  Industry. — There  are  nearly  two  million  people  engaged 
in  the  establishments  of  the  metal  trades  industry  and  it  is  easily  seen  by 
a  close  study  of  all  the  elements  involved  that  an  enormous  increase  in 
total  production  is  possible.  It  is  estimated  that  at  present  about  80% 
of  the  responsibility  for  this  waste,  or  non-production,  rests  with  man- 
agement; i.e.,  with  the  managers  and  executives  in  the  plants.  "  Respon- 
sibility "  here  means  that  the  causes  of  this  waste  can  be  removed  only 
by  management. 

The  estimated  waste  in  the  fifteen  representative  plants  selected 
by  the  Committee  is  shown  graphically  in  the  Chart,  Figure  1, — 


212 


WASTE  IN  INDUSTRY 


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THE  METAL  TRADES  INDUSTRY 


213 


averaging  28%  for  them  all  and  ranging  from  6%  waste  for  the  best  plant 
to  56%  for  the  worst.  Figure  2  shows  that  the  size  of  the  plant,  whether 
large,  medium  or  small,  does  not  necessarily  affect  its  efficiency,  as 
some  large  plants  as  well  as  some  small  ones  have  a  large  waste  factor. 

The  metal  trades  constitute  the  largest  manufacturing  industry  in 
the  United  States,  in  the  number  of  employees  engaged  and  in  the  value 
of  products.  The  principal  divisions  of  this  industry  are  as  follows: 

(a)  Metal  products,  such  as  plates,  shapes,  castings,  piping  and  tubing. 

(b)  Machinery  and  machine  tools. 

(c)  Automobiles,  trucks  and  tractors. 

(d)  Engines,  locomotives,  cars  and  trucks;  street  cars  and  equipment. 

(e)  Machine  shop  and  foundry  products,  covering  a  great  diversity  of  products. 

(f)  Shipbuilding  and  ship  repairs. 

(g)  Electrical  products  including  motors,  dynamos  and  electrical  instruments. 
(h)  Firearms  and  ammunition. 


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Location. — The  industry  is  pretty  much  concentrated  east  of  the 
Mississippi  River,  in  the  New  England  States,  the  Middle  Atlantic 
States  and  in  the  Middle  West.  Pennsylvania  and  Ohio  lead  in  the 
industry;  then  follow  New  York,  Illinois,  Massachusetts,  Connecticut 
and  New  Jersey. 

The  metal  making  branch  of  the  industry  is  not  included  in  this 
survey, — that  is  the  branch  which  produces  what  are  usually  known  as 
"  raw  materials  " — plates,  shapes,  wire,  piping,  etc.  The  largest  num- 
ber of  plants  or  shops  are  machine  shops  and  foundries,  of  which  there 
were  nearly  17,000  in  1914.  The  average  size  of  these  shops  is  rather 
small,  with  considerably  less  than  100  employees  as  the  average 
number. 


214  WASTE  IN  INDUSTRY 

Fifteen  Plants  Studied. — A  comprehensive  study  and  survey  has 
been  made  of  fifteen  representative  plants,  of  various  sizes  and  types, 
distributed  through  the  states  which  lead  in  the  industry.  In  addition 
to  these  detailed  surveys  or  assays,  a  number  of  other  plants  were  studied, 
and  general  information  obtained  through  the  co-operation  of  various 
metal  trades  associations.  Altogether  the  investigation  has  been  made 
as  thorough  and  impartial  as  possible  within  the  time  available,  with  a 
view  to  obtaining  at  first  hand  the  real  facts  upon  which  to  base  con- 
structive recommendations  or  suggestions  for  improvement. 

Major  Causes  of  Waste  in  Normal  Times. — The  major  causes  of  waste 
or  non-production,  applicable  to  normal  times  as  well  as  to  the  present 
abnormal  times,  may  be  classified  for  convenience  as  follows: 

A.  Instability  of  labor  employment, — including  both  fluctuations  in  the  number 

of  employees  in  individual  plants  or  shops,  and  the  high  labor  turnover. 
Strikes  and  lockouts  come  under  this  heading. 

B.  Inefficient  management,  which  includes: 

(1)  Lack  of  foresight  and  planning,  scheduling  and  routing  materials  effect- 
ively. 

(2)  Lack  or  proper  standards  of  performance,  by  which  to  gage  the  ability 
of  the  workers. 

(3)  Lack  of  standardization  of  equipment,  tools  and  product. 

(4)  Inadequate  transportation  and  material  handling  facilities. 

(5)  Inadequate  cost  control  methods. 

(6)  Lack  of  proper  incentive  systems,  based  upon  fair  standards  and  confi- 
dence between  employers  and  employed. 

C.  Labor  organization  rules  or  customs, — such  as  restricting  individual  output 

or  making  it  impossible  for  management  to  instal  proper  incentive  systems, 
— due  either  to  lack  of  mutual  confidence  or  a  misunderstanding  of  the 
mutual  benefits  from  increased  production. 

D.  Waste  of  materials,  from  various  reasons, — such  as  lack  of  a  well-organized 

inspection  system;  lack  of  careful  training  and  instruction  of  workers; 
lack  of  care  and  interest  in  the  work. 

E.  Lack  of  thorough  research  work  or  staff  study, — including  the  study  of 

materials,  processes  and  methods,  equipment,  and  production. 

Instability  of  Labor  Employment. — Most  of  the  plants  surveyed  give 
very  little  thought  to  the  instability  of  labor  employment.  When 
studies  are  made  in  a  plant  of  the  fluctuations  in  the  number  of  employees, 
the  management  is  usually  surprised  to  find  how  unstable  the  working 
force  really  is.  Four  charts  (Figures  3,  4  and  5)  are  shown  for  four 
plants  taken  at  random,  showing  the  wide  range  in  the  numbers  employed 
during  the  past  two  or  three  years.  These  fluctuations  were  not  due  to 
seasonal  employment,  but  largely  due  to  lack  of  planning  ahead  and 
scheduling  for  continuous  employment  on  the  contracts  in  hand. 

A  study  by  the  management  of  causes  for  fluctuations  in  the  working 
forces  for  the  past  four  years  has  led  to  an  investigation  of  the  causes 


THE  METAL  TRADES  INDUSTRY 


215 


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216  WASTE  IN  INDUSTRY 

for  the  high  labor  turnover,  and  steps  are  being  taken  to  bring  about 
a  better  understanding  between  labor  and  management.  In  studying 
this  plant,  it  was  found  that  relations  with  labor  were  practically  all 
handled  directly  by  the  foremen,  who  also  set  the  piece-rates  on  "  judg- 
ment," without  careful  study  and  observation.  Moreover,  the  planning 
and  routing  was  not  effectively  done.  This  entailed  extra  burdens  on 
the  foremen,  and  did  not  give  them  sufficient  time  to  direct  and 
observe  their  men. 

In  many  other  respects  this  plant  is  excellent  and  the  quality  of  out- 
put is  second  to  none. 

Several  other  plants  included  in  these  studies  have  methods  similar 
to  the  above,  and  with  few  exceptions  lack  an  adequate  cost  system  tied 
in  with  the  production  records  and  with  the  general  works. 

Internal  Relations. — The  proper  relationship  between  management 
and  labor,  such  as  exists  in  the  most  productive  plants  investigated,  is 
more  than  ever  a  controlling  factor.  The  plants  with  the  highest  labor 
turnover  (which  reflects  discontent)  are  in  general  the  most  wasteful  of 
human  effort;  hence  secure  the  smallest  production  per  man-hour.  It 
is  further  found  that  generally  the  best  relationship  exists  and  the  best 
understanding  and  least  friction  prevail  in  plants  where  the  most  thorough 
and  scientific  study  of  organization  methods  and  standards  has  been 
made  by  the  management  in  co-operation  with  the  workers.  The  care- 
ful planning  of  work,  the  providing  and  the  moving  of  materials  by  means 
of  effective  and  organized  methods  of  material  control;  comparison  of 
output  of  departments  and  of  individuals  with  fair  standards  of  per- 
formance, fairly  and  scientifically  determined;  these  are  the  practices  of 
those  concerns  which  have  been  most  free  from  labor  unrest,  and  where 
greatest  mutual  confidence  and  co-operation  exist  between  employer 
and  employed. 

The  provision  by  the  management  of  proper  facilities  and  convenience 
for  developing  the  latent  productivity  of  the  workers  and  the  provision 
of  fair  incentives  for  those  who  "  make  good  "  play  a  large  part  in 
elimininating  waste  in  the  best  establishments. 

Study  of  Labor  Turnover  Needed. — It  is  shown  by  experience  of  the 
plants  visited  as  well  as  by  general  experience  that  considerable  improve- 
ment can  be  brought  about  by  means  of  modern  employment  methods, 
which  provide,  among  other  features,  for  a  close  study  of  "  why  men 
quit."  Only  a  few  of  the  plants  studied  had  effective  employment 
methods  and  only  three  kept  a  record  and  made  an  analysis  of  the  true 
reasons  for  men  quitting.  Men  are  usually  "  fired  "  or  quit  work  without 
anyone  knowing  why  except  their  foreman,  and  often  a  foreman  does  not 
know  the  real  reason  why  a  man  quits  and  no  steps  are  taken  to  correct 
the  conditions  that  bring  about  so  many  expensive  separations. 


THE  METAL  TRADES  INDUSTRY  217 

Cost  of  Labor  Turnover. — In  order  to  visualize  the  cost  of  the  labor 
turnover  in  the  metal  trades  industry,  let  us  take  some  conservative 
figures  and  estimate  the  "  waste  "  in  production  in  the  industry  due  to 
this  source.  The  average  labor  turnover  for  the  year  1920,  for  the  plants 
covered  by  these  studies  (wherever  records  were  kept,  which  was  the  case 
in  less  than  half  of  the  plants),  was  160%, — the  percentage  given  in  most 
cases  being  the  ratio  between  the  number  of  "  separations  "  and  the  average 
number  on  the  payroll.  The  highest  turnover  was  366%.  An  estimate 
by  the  Metal  Manufacturers'  Association  of  Philadelphia  for  the  whole 
industry  is  that  "  it  would  average  between  150  and  170%,  for  1920.  In 
the  earlier  months  of  the  year,  when  the  demand  for  labor  was  very  great 
and  the  supply  inadequate,  in  some  shops  it  ran  as  high  as  300%,  on  an 
annual  basis.  This  turnover  was  computed  as  the  ratio  between  total 
separations  and  total  average  daily  working  force." 

There  is  a  practical  "  minimum  "  to  the  labor  turnover  in  a  shop  or 
factory  which  we  cannot  expect  to  excel  except  in  special  cases, — there 
are  "  separations "  that  are  unavoidable,  due  to  deaths,  marriages, 
etc.,  for  which  60%  may  be  allowed, — which  still  leaves  an  avoidable 
or  preventable  turnover  of  say  100%  annually  in  the  metal  trades 
industry.  This  of  course  can  be  done  only  with  a  most  thorough  under- 
standing and  co-operation  of  all  concerned:  management,  labor  and  the 
public. 

In  this  industry,  then,  with  its  two  million  employees,  with  the 
average  plant  virtually  renewing  its  entire  working  force,  or  filling  each 
position,  one-and-a-half  times  a  year,  we  have  two  million  unnecessary 
"  separations,"  the  equivalent  of  two  million  workers  annually  separated 
and  re-hired  elsewhere, — and  at  what  cost?  Expert  estimates  of  the  cost 
of  labor  turnover  vary  from  $50  to  $250  per  employee  hired,  trained  and 
separated.  An  average  figure  of  only  $50  each  applied  to  two  million 
employees  "  turned  over,"  means  an  average  "  waste  "  of  one  hundred 
million  dollars  due  to  avoidable  labor  turnover  in  this  one  industry. 

Co-operation  Needed. — Considerable  has  been  done,  and  more  can 
be  done,  to  reduce  the  high  labor  turnover  by  co-operation  between  the 
various  plants  of  the  industry,  through  their  trade  associations.  During 
the  war  the  Government  attempted  to  stabilize  labor  employment  and 
discourage  men  going  from  plant  to  plant  in  search  of  the  highest  wage 
paid  for  their  kind  of  work,  by  stabilizing  or  standardizing  the  basic 
wages  and  rates.  But  due  partly  to  the  lack  of  thoroughness  of  the  studies 
made  under  the  conditions  prevailing,  and  due  partly  to  the  lack  of 
uniformity  of  interpretation  and  application  of  the  general  rules  made 
by  the  Government  agencies,  the  plan  was  never  wholly  successful. 

Strikes  and  Lockouts  not  a  Major  Factor. — Instability  of  labor  employ- 
ment resulting  from  strikes  and  lockouts  has  not  been  as  serious  in  the 


218  WASTE  IN  INDUSTRY 

metal  trades  industry  as  in  some  other  industries,  with  the  exception 
of  the  shipbuilding  branch  of  this  industry.  The  demand  for  labor  in 
this  branch  increased  tremendously  during  the  war — far  exceeding  the 
supply, — and  in  the  space  of  two  years  the  number  of  employees  engaged 
jumped  from  100,000  to  400,000.  Wages  were  greatly  increased  as  a 
natural  consequence  and  questions  of  wages  and  piece-rates  have  been 
a  prolific  source  of  dispute. 

The  following  record  of  strikes  obtained  from  the  Atlantic  Coast 
Shipbuilders'  Association  gives  an  idea  of  the  lost  time  and  "  waste  "  in 
nine  shipyards  between  October  1,  1919  (when  an  agreement  was  signed 
up  between  some  of  the  shipyards  and  the  labor  representatives)  and 
January  1,  1921,  a  15-months'  period: 

40  strikes  affecting  21  different  trades;  total  number  of  men  out  10,538;  number 
of  hours  lost  546,079;  earnings  lost  by  the  workmen  $408,902. 

In  the  machine  tool  business  in  Ohio,  there  was  a  general  machinist 
strike  in  the  summer  of  1920,  which  affected  a  number  of  plants  very 
seriously.  In  the  Philadelphia  district,  the  metal  trades  have  been 
fairly  free  from  serious  strikes  (except  in  shipbuilding)  and  in  the  member- 
ship of  the  Metal  Manufacturers'  Association,  in  1920,  there  were  only 
three  strikes,  two  in  small  foundries  and  one  in  a  brass  shop. 

Management — Handling  of  Labor. — An  open  interchange  of  ideas 
and  business  results  by  managements  both  in  the  particular  industry  and 
in  other  industries,  should  lead  to  a  higher  level  of  methods,  service  and 
general  business  ethics.  If  carried  on  through  definite  channels  such 
interchange  might  easily  result  in  a  combined  study  of  the  possibilities 
of  the  future  and  the  avoidance,  in  the  years  to  come,  of  such  conditions 
as  we  are  now  facing.  It  is  evident  that  management  of  labor  must  be 
elevated  to  a  higher  plane.  Because  labor  is  the  major  factor  in  most 
if  not  all  industries,  it  should  be  led  by  recognized  intelligence  rather 
than  by  radical  agitators  on  the  one  hand  or  by  stupid  reactionaries  on 
the  other.  Remarkable  and  very  favorable  results  have  been  secured 
in  labor  relations  and  in  improvement  of  efficiency  simply  by  establishing 
frank  and  open  conference  and  free  interchange  of  opinions,  usually  in 
genuine  open  shops  (shops  in  which  no  prejudice  or  discrimination  is 
allowed  to  exist  either  for  or  against  men  who  do  or  do  not  belong  to 
labor  organizations)  and  sometimes  by  collective  bargaining  and  dealing 
with  a  shop  committee  to  which  is  delegated  all  responsibility  for  keeping 
the  men  to  agreements  fairly  made  between  management  and  employees. 

Examples  of  Waste  Elimination. — Figure  5  previously  referred  to 
shows  the  increase  in  output  per  employee  from  571  units  a  month  in  1918 
to  1,325  units  a  month  in  1920,  due  to  the  plant's  running  nearer  capacity 
and  due  to  improved  management.  This  is  an  example  of  increasing 
production  per  employee  over  132%.  If  production  of  1,325  is  con- 


THE  METAL  TRADES  INDUSTRY  219 

sidered  "  standard  "  or  excellent,  the  previous  production  of  571  was  only 
43%  efficient,  or  a  "  waste  "  of  57%.  Numerous  other  examples  of  this 
nature  might  be  given.  One  of  the  plants  studied  had  been  specializing 
for  many  years  in  a  product  and  the  management  had  believed  the 
operation  of  the  plant  to  be  very  efficient.  The  plant  was  modern  and 
up-to-date  in  appearance,  had  a  good  labor  market,  and  a  year  ago  they 
were  very  well  satisfied  that  they  were  getting  out  the  maximum  pro- 
duction,— which  was  20,000  units  a  week  with  1,175  employees, — or  18.7 
units  per  employee.  The  president  of  the  company  engaged  an  industrial 
engineer  as  an  assistant  to  the  general  manager, — and  his  duties  were 
purely  staff  duties,  research  work  and  study  of  the  operations  of  the 
plant.  The  general  manager  and  the  superintendents  adopted  some 
of  this  engineer's  suggestions  one  after  another;  the  planning  of  work 
was  improved,  the  routing  of  work  was  simplified  and  a  few  machines 
re-located;  there  were  some  improvements  made  in  processes;  a  better 
and  more  careful  inspection  system  for  work  in  process  was  established 
under  a  separate  department;  the  piece-work  system  was  extended,  etc. 
A  year  later,  at  the  time  the  survey  was  made,  the  production  had 
increased  from  22.000  to  34,000,  and  the  number  of  employees  had  been 
reduced  from  1,175  to  800.  The  output  per  man  weekly  had  increased 
from  18.7  units  to  42.5  units,  or  an  improvement  of  121%.  No  addi- 
tional equipment  had  been  added.  This  engineer  believes  that  with  the 
present  force  production  can  be  increased  50%  more. 

Some  Standardization  Possible. — Most  of  the  metal  products  are 
manufactured  "  on  order  " — the  result  of  the  "  sell-and-make  "  policy, — 
which  is  one  of  the  causes  for  the  "  ups-and-downs  "  in  business.  More- 
over, many  of  these  orders  are  more  or  less  special  in  their  character, 
i.e.,  departures  from  what  may  be  considered  a  standard  product  are 
dictated  by  the  buyer.  Whatever  may  be  done  in  the  way  of  standardi- 
zation of  products  would  enable  manufacturers  in  many  cases  to  feel 
justified  in  manufacturing  for  stock,  and  thus  not  only  would  production 
be  more  steadily  maintained  but  goods  would  be  produced  at  materially 
lower  costs;  costs  would  be  lower  because  of  the  greatly  reduced  invest- 
ment required  in  buildings  and  equipment  and  in  raw  and  finished  stock 
carried  in  inventories  for  a  given  volume  of  business. 

Reduction  of  Variety  of  Equipment. — The  great  variety  of  designs 
called  for  by  those  who  buy  street  cars,  locomotives,  trucks  and  other 
transportation  equipment,  is  well  known  to  be  capable  of  beneficial 
limitation  if  manufacturers  and  users  could,  through  some  agency,  get 
together  and  by  scientific  study  of  the  problems,  not  only  from  a  utility 
or  service  standpoint,  but  from  a  manufacturing  standpoint  as  well, 
reduce  as  much  as  possible  the  enormous  number  of  varieties,  styles, 
and  types  now  required  to  be  built.  Many  of  these  varieties  are  largely 


220  WASTE  IN  INDUSTRY 

a  matter  of  personal  opinion  or  judgment  of  the  buyers  who  have  not 
had  the  opportunity  to  study  the  subject  in  all  its  phases-.  A  great  deal 
can  be  done  toward  standardizing  the  designs  of  these  products  and  thus 
promoting  the  best  interests  of  all  concerned. 

Inefficiency  of  Management  Hitherto  Overlooked. — Taylor,  Gantt, 
and  others  repeatedly  declared  that  the  greater  part  of  the  failures  of 
industrial  establishments  to  attain  high  efficiency  is  caused  by  failures 
in  management.  This  has  not  been  generally  believed  and  it  so  happens 
that  things  pertaining  to  the  workman  and  his  contribution  to  industry 
have,  until  recently  at  least,  received  most  attention  in  the  technical 
and  news  press.  As  a  matter  of  fact  it  is  often  somewhat  difficult  to 
decide  with  certainty  whether  failure  to  attain  a  reasonable  degree  of 
efficiency  is  due  to  shortcomings  of  the  workers  or  to  those  of  management. 

When  an  establishment  is  low  in  efficiency  it  is  usually  true  that  the 
workers  by  taking  greater  interest  in  their  work,  or  by  simply  working 
harder,  can  bring  about  some  improvement.  But  on  the  other  hand  it  is 
generally  conceded  that  one  of  the  problems  of  management  is  to  stimulate 
and  maintain  the  interest  and  co-operation  of  workers.  When  this  has 
been  done,  as  in  many  cases  it  has  been  either  by  a  change  in  personnel 
of  the  management  or  by  a  change  of  attitude  and  practice  without  change 
of  personnel,  what  had  appeared  to  have  been  entirely  the  fault  of 
the  workers  was  seen  to  have  been  remediable  by  the  management  and 
therefore  to  have  been  management's  responsibility. 

Human  Nature  in  Management. — Regardless  of  the  industry  or  of  the 
method  by  which  it  is  conducted,  human  nature  is  always  to  be  dealt 
with  and  must  be  taken  into  account  if  the  highest  success  is  to  be 
attained.  Systems  of  management  may  help  very  much  if  they  are 
fundamentally  right  and  do  not  create  more  trouble  than  they  cure,  but 
underlying  any  system  there  must  be  the  recognition  of  the  fact  that  the 
actual  work  is  done  by  human  beings  and  that  to  disregard  human  nature 
or  to  strive  against  it  is  as  much  a  hindrance  to  high  efficiency  as  to  strive 
against  or  disregard  any  well-established  physical  law. 

Adequate  Cost  Control  Methods  Needed. — In  all  cases  it  was  found 
that  an  adequate  cost  system  was  needed.  In  controlling  production 
through  the  plant  and  in  judging  fairly  and  accurately  when  and  where 
progress  and  improvement  are  being  made,  it  was  found  that  a  modern 
cost  system  is  a  most  effective  means  in  some  of  the  plants.  The  lack  of 
a  good  cost  control  system  in  other  plants  (in  fact  the  majority  of  plants 
lack  such  a  system)  is  necessarily  a  source  of  much  waste.  This  lack 
prevents  accurate  and  prompt  correction  of  defects  because  the  defects 
remain  hidden  and  unobserved .  A  modern  good  cost  system  enables  costs  to 
be  known  quickly,  from  day  to  day  during  the  progress  of  a  job  if  desired, 
and  is  thus  made  useful  in  enabling  executives  to  control  and  reduce  them. 


THE  METAL  TRADES  INDUSTRY  221 

The  One-Man  Shop. — A  small  work  shop  may  be  very  efficiently 
conducted  if  it  happens  that  the  owner  of  it  "  runs  it  "  and  if  he  is  naturally 
a  good  manager  or  executive.  Such  a  man  personally  knows  all  his 
employees,  spends  most  of  his  time  with  them,  teaching,  leading  and 
helping  them  in  all  their  work.  He  may  easily  know  the  capacities  and 
limitations  peculiar  to  each  employee.  His  treatment  of  them  will  be 
such  as  to  reduce  "  labor  turnover  "  to  a  negligible  quantity  and  the 
number  of  new  men  employed  will  be  so  small  that  he  can,  with  compara- 
tive ease,  get  good  men  when  he  wants  them;  all  his  contented  and  loyal 
employees  become  his  agents  in  securing  additional  help  when  wanted. 
The  movement  of  materials  from  place  to  place  as  needed  and  the  planning 
of  operations  in  proper  sequence  are  easily  accomplished  by  such  a  man 
under  such  conditions. 

The  Large-Scale  Organization. — Beyond  a  certain  magnitude  one- 
man  management  obviously  becomes  impossible,  and  management 
functions  must  be  delegated  to  others  who  must  be  carefully  selected  and 
trained  and  whose  activities  must  be  thoroughly  co-ordinated  and 
harmonized.  It  is  the  task  of  the  modern  industrial  leader  to  delegate 
the  management  functions  and  the  problems  of  human  nature,  to  which 
many  of  our  industrial  difficulties  are  traceable,  to  subordinate  execu- 
tives, and  to  supply  them  with  the  means  for  solving  these  problems 
Failure  to  make  such  provision  must  be  considered  as  incompetent 
management.  There  is  probably  a  direct  connection  between  the  increase 
in  size  of  industrial  plants,  and  the  statement  made  by  "  Bradstreet " 
to  the  effect  that,  while  "  incompetence  "  had  always  bulked  large  as  a 
cause  of  business  failures,  by  1912  it  had  grown  to  be  the  chief  cause  and 
by  1919,  38.2%  of  all  failures  were  caused  by  it.  During  this  period 
plants  were  rapidly  increasing  in  size  because  of  the  growth  of  the  country 
and  a  higher  standard  of  management  was  at  the  same  time  being  required. 

Variation  from  Standard. — It  is  found  that  the  average  metal  working 
plant  is  25%  to  30%  behind  the  best  plant  in  output  per  employee, — 
which  situation  can  be  greatly  improved  by  a  proper  understanding 
between  management,  labor  and  the  public,  and  by  all  co-operating  to 
the  same  end. 

The  assay  of  this  industry  had  for  its  object  to  find  out : 

1.  How  nearly  the  methods  in  use  in  typical  establishments  attain  to  the  stand 
ards  of  the  best  plants  in  the  industry; 

2.  So  far  as  possible  the  reasons  for  failure  to  attain  to  them; 

3.  To  whom  the  responsibility  for  such  failure  belongs;   and  to  evaluate  that 
responsibility; 

4.  What  may  be  done  to  bring  about  possible  improvement. 

It  is  the  difficulty  of  attaining  to,  or  of  even  approximating  the  stand- 
ards of  the  best  plants  in  the  industry  without  an  adequate  organization 


222  WASTE  IN  INDUSTRY 

and  the  best  of  methods  of  administration  that  gives  rise  to  the  belief, 
quite  commonly  held,  that  an  establishment  can  become  so  large  as  to  be 
"  unwieldy  "  and  "  unmanageable,"  whereas  those  who  know  the  virtues 
of  thorough  orgnaization  and  of  proper  distribution  of  authority  and 
control,  place  no  limitation  upon  the  magnitude  of  a  really  well-managed 
and  efficient  establishment.  But  the  large  establishment  must  disregard 
the  bugbear  of  "  non-productive  labor  "  and  must  see  to  it  that  each 
executive,  major  or  minor,  must  have  only  as  much  to  attend  to  as  he  can 
attend  to  thoroughly. 

The  system  of  records  and  reports  must  be  considered  only  as  neces- 
sary accessories  to  the  process  of  production.  It  must  supply  to  every 
responsible  executive,  accurately  and  promptly,  the  information  he  needs 
to  have  in  order  to  discharge  his  responsibilities.  No  blanks  should  be 
used  or  reports  made  except  such  as  have  a  demonstrated  value  and  use- 
fulness. Among  them  should  be  by  all  means,  however,  records  of  each 
employee,  showing  his  attainments  with  respect  to  an  established  and  fair 
standard,  known  to  both  management  and  worker.  Wage  adjustments, 
questions  of  preferment  in  employment,  promotion,  etc.,  should  be 
determined  or  at  least  largely  influenced  by  such  records.  No  action  in 
such  matters  should  be  taken  by  any  foreman  or  other  executive  on  mere 
whim  or  impulse.  When  a  man  is  sure  that  his  standing  will  be  fixed 
and  maintained  by  such  a  daily  record  of  achievement  he  will  do  his  best 
to  have  that  record  as  good  as  possible. 

Successful  Plants  Have  Management  Systems. — So  called  "  systems  " 
of  management  have  been  declared  to  be  failures  in  certain  establishments 
and,  as  is  usually  the  case  with  any  new  thing,  these  alleged  failures  are 
more  talked  of  than  the  successes.  It  is  clear  that  many  proprietors  and 
workmen  are  depriving  themselves  of  what  would  be  of  the  greatest 
benefit  to  them,  because  of  prejudice  and  because  the  real  reasons  for 
the  alleged  failures  are  not  and  can  not  be  made  generally  known.  But 
the  fact  is  that-  there  are  many  establishments  in  which  single  features 
borrowed  (unwittingly)  from  these  systems  are  being  used  with  good 
effect  and  where  the  entire  co-ordinated  system  would  give  correspond- 
ingly larger  results.  Other  establishments  are  using  good  systems  entirely, 
and  among  the  establishments  studied  by  the  Committee  are  some  of 
these  in  which  the  best  all  round  results  are  being  secured,  the  proprietors 
of  which  would  not  think  of  such  a  thing  as  going  back  to  the  older 
and  more  primitive  practice. 

It  will  take  time  to  bring  the  entire  industry  up  to  the  higher  level. 
During  that  time  some  establishments  will  probably  be  eliminated  by  the 
competition  of  the  more  advanced,  but  in  this  direction  lies  the  only 
hope  of  eliminating  industrial  wastes. 

WILLIAM  B.  FERGUSON. 
FRED  J.  MILLER. 


THE  METAL  TRADES  INDUSTRY 


223 


FIELD     REPORT   EVALUATION 

OF 

THE  FEDERATED  AMERICAN  ENGINEERING  SOCIETIES 

INDUSTRYWefa/rrarfes        PLANT  NO./                              EST.  BY  H.J.5.                                        DATE  4/l/ZI 

>   ®  +  (D  +  ©  -  ®  Excellent  =0°/oWos  e          poor=60°/oWaste                     a  +  b  -K:  -d  =  \00°to 

CAUSES 

Guide 

RESPONSI    Bl    LITIE 

S    ' 

TOTAL  WASTE 

for 

LABOR 

Waste 

Field 
nvesti- 

ss,gned 
Points 

Est.°/o 
Waste 

Points 
Waste 

wIS? 

Waste 

Points 
Waste 

ssiqned 
Points 

Est,°/o 
Wastq 

Points 
Waste 

togned 
Points 

1 

Z 

3 

4 

5 

6 

"K     j 

9 

IO 

II 

12 

13 

14 

_r 

Kl 

1.0 

80 

0. 

1.0 

0.8 

c 

K2 

20 

40 

0. 

2.0 

0-8 

K3 

1.0 

80 

0. 

1.0 

(.8 

1      0. 

K4- 

.0 

80 

0 

1.0 

0.8 

If 

KS 

2.0 

60 

1. 

2.0 

.2 

°    § 

KG 

.0 

80 

0   1 

1.0 

0. 

K7 

0.5 

60 

0 

0-5 

GO 

0.3 

1.0 

0., 

|1 

K8 

.0 

60 

0 

1.0 

0. 

0     g-  | 

K10 

~iT~ 

Ts~ 







2.0 

—   ^    31 

0.5 

80 

0-4 

0.5 

60 

0. 

1.0 

0. 

1-    3  ~ 

KK 

3.0 

60 

1.8 

1-0 

60 

0. 

4.0 

2-' 

<    i   '* 

KB 

1.0 

20 

07 

0.5 

20 

0. 

0.5 

20 

0   1 

2.0 

0.4 

*      £     § 

KI5 



_tp_ 

_OJ_ 

—  

z   -ril 

16 

"*  -£  "S 

8 

\~ 

20 

0.2 

0  r> 

20 

0. 

0.5 

20 

O.I 

2.0 

0.4 

°  <^ 

19 

0.5 

80     i 

0.4 

0.5 

80 

0. 

1.0 

0.8 

ofl 

ZO 

0.5 

40 

0.2 

0.25 

40 

0. 

0.25 

40 

O.I 

1.0 

0.4 

f  1 

w-     o 

c  "c 

I  1 

0     g, 

S 

£  « 

TOTAL 

2    5 

1  .45 

5.75 

2.75 

2.75 

1.05 

a|30.0 

e    s.z 

Tl 

0.5 

80 

0.* 

0.5 

80 

0.4 

1.0 

0.8 

01  75 

•n 

20 

40 

C  .  i 

2.0 

0.8 

«  fe 

T3 

2.0 

20 

0. 

2U 

0.4 

-Jjl 

T5 

2.0 

20    • 

0. 

2.0 

0.4 

Sfj 

T6 

0.5 

80 

0.4 

0.5 

80 

0.4 

1.0 

0.8 

O-i  Q- 

^  i5  "o 

-g  8 

6  £ 

3  S 

TOTAL 

1  .0 

4. 

4.0 

2.4 

b|l5.0 

f    7.2 

1  I 

0 

60 

2.0 

l.t 

c 

U2 

.0 

20 

7.0 

0.4 

1 

a 

o| 

~U4  

.0 

C  0 

5.0 

.0 

US 

.0 

40 

2.0 

.8 

U6 

.0 

GO 

2.0 

.2 

7 

.0 

20 

4.0 

.8 

9 

.0 

80 

1.0 

.8 

9 

0 

(0 

1  10 

.0 

20 

1.0 

20 

0-Z. 

2.0 

,4 

II 

0 

20 

4.0 

0-8 

N| 

U  2 

>.o 

20 

fc.O 

3 

'    0 

GO 

40 

2.4 

4- 

.0 

40 

z.o 

"  °       4 

0.8 

60 

2.4 

5 

.0 

1.0 

2.0 

U  T  1  L 

Effectiveness  of  Techn 
Direction  Control  and 

7  

-^J- 



—  — 

_02_ 

10 

3.0 

_M>_ 

UI8 

\  5 

20 

0.3 

0.5 

20 

O.I 

2.0 

0.4 

TOTAL 

47.5 

7.5 

4.0 

1.2 

35 

0.3 

C    55 

9   190 

GRAND  TOTAL 

80.0 

33.7 

9.75 

3.95 

10.25 

3.75 

d  100.0 

h  4  .4 

224 


WASTE  IN  INDUSTRY 


FIELD    REPORT  EVALUATION 

AMERICAN     EN6INEERIN6    COUNC   L 
OF 

INDUSTRY  Metal  Trades      PLANT  NO.  2                          EST.  BY                                                  DATE  4/e/*,      . 

>    0+®  +  ®*®  Excellent  J)°loW<iste           p00r  =60<y0Waste                      a+  b  +C  -<J  =  I00°)o 

S  ®  +  (D  .  ®  =  ®  ?oi°rd       3*  :           Bad  -80°'°   "                      e  +  f  +g  -  h  -  1»  Waste 

CAUSES 

Quest,ons 
for 
field 

Investi- 

RESPON  SI  B  1  LI  TIE  S 

TOTALWASTE 

OUTSIDE  CONTACTS 

Points 

Points 

Est 
Wo 

°/o 

te 

Points 
Waste 

Assigned 

Est. 

°/0 

Points 

WfM 

£ 

°/o 

Points 

BSigned 

ORGANIZATION 

lanism  of  Industry  astoType,  Methods(PaperWorK)and  Personnel, 
ignment  and  Discharge  of  Responsibility  and  Relationship 

K2 

—  

K3 

r 

K* 

4 

1 

K6 

3 

2 

K8 

I 

K9 

0 

K  10 

0 

K  II 

0 

is 

* 

KI3 

KI4 

1 

KIS 

0 

0 

KI7 

0 

KIB 

0 

KI9 

3 

K20 

KZI 

0 

a  S 

•z  •* 

TOTAL 

10 

3 

e|o 

TECHNICAL 

Available  Engineering  Knowledge 
os  to  Product,  Plant  and  Materials 

T| 

20 

1.0 

1.0 

TZ 

0 

1.0 

I.Q 

T3 

0 

T4 

0 

TS 

JO 

T6 

z 

-K 

0.40 

0.4 

T7 

B 

0 

TOTAL 

Z 

5.40 

3 

P  2.4 

E  ATI  OH 

Knowledge  ond  Organization 
ounting  Factors 

01 

20 

0.4 

0.4 

Ul 

UJ 

US 

U6 

U7 

2.0 

2.0 

U8 

in 

UK) 

Ull 

yjz 

uu 

U14 

1.2 

.2 

IU  T  1  L  1 

Effectiveness  of  Techmca 
Direction,  Control  and  Ace 

UIS 

UI6 

un 

UI8 

TOTAL 

43 

3.6 

gn 

100 

6.0 

h|,o 

THE  METAL  TRADES  INDUSTRY 


225 


FIELD     RE  PORT    EVALUATION 

AMERICAN     ENGINEERING    COUNCIL 
OF 
THE    FEDERATED    AMERICAN    ENGINEERING   SOCIETIES 

INDUSTRY  MeialTrades       PLANT  NO.  3                           EST.  ZYW.B.F,                                      DATE3//7/2/ 

>-    ©t®  t  (D  -®  Excellent  -0%Waste         Poor  -60°f0Waste                    a+  b  +  c  -d  =  IOO°lo 
*   ®  +  ®t®=®Fa™d        SI:;'            Bad-80°|0),                        etf+g-h-'loWaste 

5 

0 

< 

RESPONSI8ILITIE 

S 

TOTALWASTE 

for 

LABOR 

'oints 
Waste 

Field 
nvesti- 

Assigned 
Points 

Est.°|o 
Waste 

Points 
Waste 

Assigned 
Points 

Est°lo 
Waste 

Points 
Waste 

Assigned 
Pomts 

bt.°lo 

Waste 

Points 
Waste 

SSigned 
Points 

gator 

1 

2 

3 

4 

9 

- 

Ki 

20 

10 

0.4 

2.0 

c 

KJ 

2.0 

40 

0.8 

2.0 

0-8 

% 

K3 

10 

20 

0.4 

2.0 

0.4 

&.    o. 

K4 

1-0 

20 

o.z 

•  0 

0.2 

If 

o   g 

K6 

1.0 

20 

0-2. 

1.0 

TO 

0.2 

2.0 

0.4- 

KI 

2.  V 

20 

0.4 

2-0 

0.4 

II 

K8 

z   fc* 

K  9 

2.0 

60 

i.Z 

2.0 

.2 

o   g-1 

KIO 

KM 

1.0 

80 

0.8 

1.0 

0.8 

<  Is 

40 

0.4 

40 

0.4 

2.0 

1.2 

4.0 

2.0 

H    f    £ 

KI4 

1.0 

.0 

r   O 

KIS 

1.0 

20 

0.2 

1.0 

20 

O.Z 

2.0 

0.4 

<  £"5 
*   S  & 

KI9 

z.o 

20 

0-4 

2-0 

0-4 

K  ££ 

1.0 

1-0 

0     g_g 

K?l 

2.0 

10 

0.4 

Z.O 

0.4 

11 

tl 

§  I 

1  1 

6  -R 

£5 

TOTAL 

zvo 

7.6 

7.0 

3.4- 

5.0 

Z.O 

OJ35.0 

6    130 

T  1 

^.0 

40 

0.8 

20 

to 

1-2, 

i  .0 

'/  0 

8>| 

T! 

20 

JO 

0.4 

.0 

0.4 

fl 

T3 

2..0 

20 

0.4 

.0 

04 

§£ 

14 

30 

40 

hi 

0 

1.2 

1= 

75 

Z.O 

20 

0.4 

.0 

0.4 

h 

T6 

2.0 

20 

C-4 

.0 

0.4 

11 

—  

—  — 





—  

•II 

jff 

<u^ 

-§£ 

•5  £ 

IJ 

TOTAL 

18  0 

5.6 

4.0 

Z.O 

IE 

t'|7.6 

.  A  T  1  0  N 

Knowledge  and  Organiiation. 
Anting  Factors 

Ul 

4.0 

20 

0.8 

4..0 

0.8 

U2 

2.0 

80 

1.6 

2.0 

.6 

US 

1.0 

80 

0.8 

1.0 

0.8 

U4 

3-0 

60 

1-8 

3.  a 

.8 

U5 

3.0 

&0 

1. 

3.0 

.8 

U6 

60 

0. 

2.0 

60 

I.Z. 

a 

.8 

U7 

3.0 

40 

1- 

3.0 

.2 

U8 

1.0 

60 

0 

1.0 

60 

0-6 

2.0 

1 

U9 

2.0 

40 

0 

2.0 

.8 

UIO 

Ull 

30 

40 

I. 

2.0 

40 

08 

5.0 

0 

UI2 

4.0 

60 

2 

4.0 

.4 

US 

3.0 

faU 

1. 

3.0 

•  8 

UI4 

to 

40 

0 

2.0 

(  .8 

'c  < 

>lj 

*~  1Z  "5 

U15 

i(J 

0.4 

2.0 

y§ 

2.0 

40 

0.8 

1.0 

40 

0.4 

3.0 

.•2 

un 

1.0 

40 

1.0 

40 

0.4 

2.0 

.8 

40 

0.4 

1.0 

11. 

Effectiveness 
Direction,  Coni 

TOTAL 

36.0 

16.6 

3.0 

1.8 

6.0 

3.Z 

c  •'•••  • 

9  21.6 

GRAND  TOTAL 

W.8 

10.0 

5.2 

15.0 

7.Z 

d  oo.o 

h  4t.i 

226 


WASTE  IN  INDUSTRY 


FIELD     REPORT   EVALUATION 

AMERICAN     ENGINEERING     COUNCIL 
OF 

INDUSTRY#eto/7rcWM         PLANT  NO.  4                            EST.  BY                                                     DATE 

V    0  +  (f)  ••-  (f)  -  ®  Excellent  -D'VoWaste          poor  _60°/o  Waste 
*    ©  +  ®  +  ®~®  Foir          =w°'°    " 

(j  +  b-t-C  -d  -I008/a 

9 

CAUSES 

Questions: 

s 

TOTALWA8TE 

Points 
Waste 

Field 

Points 

Est.°fo 
Waste 

Waste 

Points 

Est.% 
Waste 

Points 
Waste 

teu 

Est°/o 
Waste 

Waste 

Points 

2 

4 

6 

7 

6 

3 

_- 

Kl 

0 

SO 

.0 

0 

1 

K2 

0 

80 

1.6 

2.0 

.6 

§ 

K3 

0 

80 

0.8 

1.0 

0.8 

1   a 

K4- 

•0 

80 

0.8 

1.0 

0.8 

c   * 

K5 

0 

JO 

0.2 

.0 

0     0 

K6- 

to 

80 

4*6 

2-0 

(.6 

K7 

3.0 

80 

2.4 

3.0 

24 

£  % 

1-0 

60 

0.6 

.0 

0.6 

Z    fc  " 

9 

.0 

40 

0.4 

',0 

0.4 

o   g-1 

10 

1.0 

0 

.0 

-£  S, 

U 

1.0 

0 

.0 

12 

to 

80 

1.6 

2.0 

80 

1.6 

4-0 

3.2 

<  S'i 

13 

.0 

80 

0.8 

1.0 

0.8 

It 

.0 

0 

.0 

—      -    a 

K  15 

3-0 

0 

3.0 

Z.     %£ 

KM 

zo 

0 

2.0 

KI7 

2.0 

80 

1.6 

1.0 

80 

0.8 

ig 

2-4 

KI8 

.0 

80 

0.8 

1.0 

0.8 

KJ9 

1.0 

80 

0.8 

1  0 

0.8 

KtO 

2.0 

20 

0-4 

2-0 

0,4 

0     »    g 

K2I 

2.0 

60 

1.2 

2.0 

1.2 

"c  ° 

^  i 

a    o> 

|l 

TOTAL 

35.0 

15  fc 

3.0 

2.4 

0(38.^ 

8      j 

T| 

6.0 

60 

3-6 

6.0 

36 

m  — 

T2 

-  , 

0 

3  0 

|{ 

T3 

.0 

60 

0-6 

,0 

0.6 

T4 

5.0 

80 

4.0 

5.0 

4.0 

c  ^ 

TS 

2.0 

0 

T6 

6.0 

20 

1.2 

6.0 

I.Z 

T7 

6.0 

80 

1.6 

4.0 

80 

3.2 

6.0 

4.8 

SJ    c 

CTJ  tl 

t5    "tJ 

OJ    -^ 

111    -a    u 

o  -2 

TOTAL 

29.0 

11.0 

4.0 

3-2 

bJ33.0 

"I'.;  " 

0 

20 

0.4 

2.0 

0-4 

U2 

0 

20 

0.2 

3.0 

20 

0.6 

4.0 

0-8 

Ui 

.0 

80 

1.6 

2.0 

1.6 

o 

U4 

0 

40 

0.8 

.0 

0.8 

••j 

US 

.0 

40" 

0.8 

.0 

0.8 

i> 

U6 

0 

20 

0.2 

.0 

0.2 

o 

U7 

.0 

80 

0.8 

.0 

0.8 

U8 

0 

80 

0.8 

.0 

08 

U9 

.0 

20 

0-2 

.0 

0.2 

!j} 

UIO 

0 

40 

0.4 

.0 

0.4 

Ull 

0 

80 

0.8 

1.0 

0.8 

UI2 

.0 

80 

0.8 

1.0 

0.8 

Utt 

.0 

80 

1.6 

2.0 

16 

UI* 

0 

20 

0.2 

1.0 

0.2 

U  T  1  L  1  ' 

Effectiveness  of  Technico 
Direction,  Control  and  Ace 

UI5 

.0 

20 

0-2 

,0 

02 

U16 

6.0 

20 

1.2 

6.0 

.2 

UI7 

5.0 

0 

5.0 

UI8 

to 

0 

20 

GRAND 

TOTAL 

100-0 

37.6 

3.0 

2.4 

7.0 

3.8 

d  100-0 

h438 

THE  METAL  TRADES  INDUSTRY 


227 


FIELD    REPORT  EVALUATION 

AMER  CAN     ENGINEERING    CQUNCIL 
OF 
THE   FEDERATED    AMERICAN   ENGINEERING  SOCIETIES 

INDUSTRY  Metal  Trades     PLANT  NO.^"                           EST.  BY  P.  G.  S  .Jr.                                DATE  Z/16/2/ 

•r    0  +  (5)  +®  =  ®  Excellent  =  0°/0YJaste     p0or=60°lo  Waste              a  +  b  -t-c  =d  =  100°/o 
£   ®+®+@  =  ®  ?a°°d       3$    "        Bad=80°/oWaste              e  +  f  tg=h=    'loVfaste 

CAUSES 

Suide 

RESPONSIBI  LITIES 

TOTALWASTE 

M  AN  AGEM  ENT 

LABOR 

Points 
Waste 
~~K  — 

Feld 
nvesti- 

ssigned 
Points 

Est.°lo 
Waste 

—  s  —  I  —  *~~ 

Points 
Waste 
—f  — 

Assigned 
Points 
—  §— 

Est.°|o 
Waste 
—  6  —  I  —  1  — 

Points 
Waste 

Assigned 
Points 

—  9  — 

Est.°|o 
Waste 
~io  —  1  —  n  — 

Points 
Waste 
"12  — 

togned 
—  J3  — 

c 

K? 

4 

40 

1.6 

1.6 

3, 

K3 

<V          £_ 

K4 

j 

20 

.2 

.1 

^  "" 

K5 

0     0 

KG 

K7 

4 

GO 

2.4 

2.4      i 

ORGANIZATION 

i  of  Industry  astoType}Methods(PaperWo 
ntand  Discharge  of  Responsibility  and  Rel 

K8 

1 

40 

•  4 

.4 

Kll 

KI2 

2 

20 

^ 

I 

40 

.4 

•8 

KI3 

2 

20 

4 

i 

20 

.2 

•6 

14 

(15 

I 

0 

0 

(17 

0 

18 

1 

20 

•2 

1 

.2 

19 

0 

(JO 

1 

20 

.2 

1 

•  2 

tl 

1 

40 

•4 

1 

•4 

|I 
]| 

TOTAL 

16 

5.8 

2 

.4 

2 

.6 

a|20 

£  6.8 

1  C  A  L 

neering  Knowledge 
ant  and  Materials 

Tl 

40 

?.o 

3 

40' 

1.2 

8 

3.2 

TZ 

40 

2.0 

5 

2.0 

T3 

1 

T4- 

40 

?.4 

0 

Z.4 

T5 

20 

•4 

1 

20 

.2 

3 

•  6 

"6 

20 

•  8 

4 

.8 

T7 

0 

2 

20 

.4- 

8 

.4 

T  ECH  f 

Available  Eng'i 
asto  Product,PI 

TOTAL 

29 

7.6 

1 

.2 

5 

1.6 

b|35 

r'|9.4 

T  1  0  N 

vledge  and  Organization, 
ng  Factors 

Ul 

7 

60 

4.2 

4.2 

U2 

1 

0 

1 

20 

.2 

-2 

U3 

U4 

G 

40 

?4 

2.4 

J5 

U6 

2 

20 

.4 

1 

20 

•e 

.6 

C 

20 

1.2 

.1.2 

US 

U9 

? 

40 

.8 

.8 

UIO 

1 

20 

.Z 

1 

0 

.2 

JM 

3 

40 

l.Z 

1 

60 

1.8 

3.0 

UI2 

1 

o 

<|1 

.  U 

2 

0 

UH 

0 

o  ^ 

U  S 

20 

.2 

1 

20 

•  Z 

.4 

U  T  1  L 

Effectiveness  of  Techni 
Direction,  Control  and  A 

UI6 

2 

0 

I 

40 

•4 

.4 

jn 

I 

0 

JI8 

0 

TOTAL 

37 

10.6 

3 

•6 

5 

2.2 

C  45 

g|».4 

GRAND  TOTAL 

25 

24- 

6 

I.E 

IE 

4.4- 

d   oo 

h[29.6 

228 


INDUSTRY 


FIELD     REPORT  EVALUATION 

3UNCIL 
ERING   SOCIETIES 

OF 
THE   FEDERATED    AMERICAN  ENGINE 

INDUSTRY  MefolTrades      PLANT  NO.  6                           EST.  BYC.5.5                                     DATE 

™    ®4- 

®+-(g 

=  ©  Excellent*  0°/oWaste     Poor  „  6o°/o  Waste               a  +  b  +  c  -  d  =  100% 
=  ®  Fair         "40%  »         Bad-  80%  waste               e  +  f  +  g  -  h  =    °/o  Waste 

U) 

M 

O 

Vide 

RESPONSIBI  LITIES 

TOTALWASTE 

for 

LABOR 

OUTSIDE  CONT    ACTS 

Points 
Waste 

Field 
nvesti- 

bsigned 
Points 

Est°|0 
Waste 

Points 
Waste 

±r 

Est.ofo 
Waste 

Points 
Waste 

w 

Est.°lo 
Waste 

Points 

Vasti 

Assigned 
Points 

s 

5 

6 

B 

9 

H 

12 

13 

-s 

Kl 

Z 

i 

K2 

40 

K3 

80 

.8 

|.|- 

K4 

ZO 

•2 

K  5 

80 

3 

-S  ° 

K6 

60 

.6 

K7 

60 

.6 

K8 

60 

•6 

2   ^^ 

K9 

60 

•6 

KIO 

40 

.4 

-fj1 

KH 

40 

-4 

KIZ 

80 

^ 

BO 

1.6 

2.4 

<  -^  "^ 

KU 

80 

-8 

.  "w    ^ 

KI4 

20 

.2 

—   *•  E- 

KIS 

0 

^    o-  S 

KI6 

0 

KIT 

0 

KI8 

0 

KJ9 

0 

4 

KZO 

60 

•6 

1 

.6 

O      3     Irt 

K  21 

80 

"c  ^ 

*t;  c 

F  "H 

\o    p 

O    p 

"5  '?> 

«  5 

TOTAL 

34 

12 

e 

1.6 

aJ36 

e|n* 

T  1 

£ 

0 

I4 

£ 

J 

80 

1.6 

3 

I 

60 

•6 

3  -^ 

74 

6 

80 

4.8 

J   ^  3Z 

5 

} 

40 

1.2 

<     O3"O 

T6 

2 

0 

<->  -c  ^ 

6 

0 

2 

20 

.4- 

•4 

"~    v   o 

*a>o- 

iS  "*5 

«  s| 

I! 

TOTAL 

28 

8  2 

2 

.4 

b  xo 

f:8.6j 

UTILJZATI  ON 

Effectiveness  of  Technical  Knowledge  and  Organisation. 
Direction,  Control  and  Accounting  Factors 

Ul 

0 

-^?— 

—  ^  

20 

—  ^~ 

.4 

U3 

80 

.8 

U4 

80 

._$ 

US 

80 

4.8 

U6 

40 

4 

80 

•8 

U8 

80 

•8 

U9 

80 

fcj 

UIO 

40 

.1 

UI2 

80 

4.0 

UU 

8Q 

1.6 

UI4 

40 

.4 

UIS 

20 

.t 

UI6 

0 

un 

0 

UI8 

0 

TOTAL 

38 

n.8 

2 

.4 

C    40 

g  i3-i 

GRAND  TOTAL 

100 

31.0 

z 

1.6 

4 

.8     |d| 

h  19.4 

THE  METAL  TRADES  INDUSTRY 


229 


FIELD    REPORT  EVALUATION 

COMMITTEE    ON    ELIMINAT   ON    OF    WASTE    IN    INDUSTRY 
AMERICAN     ENGINEERING    COUNCIL 
OF 

INDUSTRY  MefalTrades      PLANT  NO.  7                           EST.BY^S-Wr                                   DATE 

y.    (D+®  +  ®=©  Excellent-0°/oWaste     p00r  =  60%  Waste              a+b+c=d=  100% 
*    ®  +  (D  -r  ®  =  ®  Fa°ir         :S*   "         Bad=  80°'oWa^               6  +  f  +  g  =  h  "    °/a  Waste 

CAUSES 

Guide 

RESPONSIBILITIES 

TOTAL  WASTE 

for 

LABOR 

Points 
Waste 

Field 
Investi- 

Assigned 
Points 

Est.°lo 
Waste 

Points 
Waste 

Assigned 
Points 

Est.°|o 
Waste 

Points 
Waste 

Assigned 
Points 

Est.°lo 
Waste 

Pomrs 
Waste 

Assigned 
Points 

K 

K2 

4 

20 

•8 

•  8 

KJ 

K4 

2 

0 

Tl  0  N 

ods(PaperWork)and  P 
ility  and  Relationsh 

K 

0 

w 

K' 

3 

20 

•6 

.6 

K 

K 

1 

20 

.2 

•2 

KIO 

KM 

KI2 

1 

20 

•2 

? 

20 

.4 

1 

20 

•2 

-8 

0  R  G  A  N  I  I  /> 

Mechanism  of  Industry  as  toType,Meth 
Assignmentand  Discharge  of  Responsib 

KI4 

—  

—  ~  — 





_J  —  , 



KIS 

i 

0 

l 

20 

.2 

.2 

KI6 

KIT 

KIS 

.2 

KI9 

1 

20 

•2 

i 

20 

.•£ 

•2 

KZO 

1 

20 

•  2 

.2 

K2 

1 

20 

•2 

•2 

TOTAL 

8 

2.4 

4 

.6 

3 

.4 

aJ25 

e|i-« 

N  1  C  A  L 

leering  Knowledge 
ant  and  Ma-terials 

Tl 

5 

0 

2 

0 

l 

T2 

4 

20 

•8 

4 

.8 

T3 

2 

40 

•  8 

2 

.8 

T4 

6 

0 

c 

T5 

} 

20 

.6 

5 

.6 

T6 

5 

0 

5 

T7 

6 

0 

2 

20 

.4 

8 

TECH 

Available  Engi 
astoProduct,PI 

TOTAL 

31 

2.2 

0 

0 

4 

.4 

b|  is 

f  ?.6 

1  O  N 

ledge  and  Organ'aation. 
ng  Factors 

Ul 

40 

2.0 

U2 

0 

1 

20 

•  2 

.2 

U3 

60 

•6 

•6 

U4 

40 

2.8 

U5 

40 

•8 

•8 

U7 

40 

2.0 

U8 

U9 

0 

U>0 

40 

•  4 

.4 

Ull 

20 

.2 

2 

4-0 

.8 

1.0 

UI2 

0 

Eil 

UI3 

0 

UI4 

0 

U  T  1  L  1 

Effectiveness  of'Technica 
Direction,Control  and  Ace 

UI6 

0 

un 

40 

•  8 

.8 

U  8 

0 

TOTAL 

JI 

9.6 

0 

0 

J 

1.0 

£   40 

9    10.6 

6RANO  TOTAL 

86 

14.2 

4 

1 

6     |    10 

1.8 

d    oo 

T  16.6 

230 


INDUSTRY 


FIELD    REPORT  EVALUATION 

COMMITTEE    ON    ELIMINATION     OF    WASTE     IN    INDUSTRY 
AMERICAN     ENGINEERING     COUNCIL 
OF 
THE    FEDERATED    AMERICAN    ENGINEERING    SOC   ETIES 

INDUSTRY  Metal  Trades        PLANT  NO.  8                           EST.  BY  H.J.B.                                      OMt4/G/2/ 

,-©4-©  +  ®=©  Excellent-  00/oWaste      Poor  =  60°/0  Waste               a  +  b  +  C  =  d  =  I00°lo 
"    ®  +®  +@-@  Fa,Y         :ISo,o  ;;         *°d-  8°°'°*°^               e  +  f  *  9  -  h  -    °lo  Waste 

CAUSES 

Guide 
*£„ 

a. 

gator 

RESPOHSIBILITIES 

TOTAL  WASTE 

MANAGEMENT 

LABOR                       ||      OUTS.DECONT    ACTS 

A^gned 
Points 

Points 
Waste 

•••:,"- 
Points 

1Est.°|0 
Waste 

Points 
Waste 

Assigned 
PoirrH 

Est.°|o 
Waste 

Poim; 
Waste 

Points 

Est.°lo 
Waste 

Was* 

and  Personnel,  | 
onship 

KI 

0 

KJ 

0 

) 

44 

.4 

4 

60 

1.2 

s 

*S 

•  8 

£ 

0 

II 

11 
1  = 

7 

0 

•5 

0 

8 

0 

20 

.J 

.?•; 

20 

.05 

.25 

20 

.05 

10 

0 

•5 

0 

20 

j 

.5 

20 

.1 

KI2 

40 

1.4 

I.S 

40 

.6 

0  R  G  A  N  1  1  A 

Mechanism  of  IndustryastoType.Methc 
Assignment  and  Discharge  of  Responsib 

KB 

20 

•3 

.25 

20 

.OS 

.25 

20 

.05 

KI4 

20 

.3 

•  H 

20 

.05 

.25 

20 

.05 

KIS 

KIS 

K  n 

1 

20 

.2 

1.5 

20 

.3 

•5 

20 

.1 

K  16 

1.5 

20 

•3 

.5 

to 

.1 

KIS 

1.5 

20 

•3 

.5 

20 

•1 

i   • 

KM 

K  21 

1 

0 

•5 

0 

.5 

TOTAL 

26.5 

5.6 

6.T5 

1.35 

1.15 

.25 

a|55 

e  7.: 

E  C  H  N  1  C  A  L 

le  Engineering  Knowledge 
duct,Plantand  Materials 

Tl 

.S 

20 

.1 

.5 

20 

j 

.2 

T2 

2 

20 

.4 

l 

.4 

TJ 

2 

20 

.4 

^ 

4 

T4 

1.5 

60 

.9 

.5 

60 

.3 

\ 

1.2 

T5 

1 

20 

.2 

i 

.2 

T6 

.5 

20 

•  1 

.5 

"20 

.1 

;• 

n 

4. 

20 

.8 

•2 

20 

.4 

6 

1.2 

=  i 
II 

TOTAL 

1.5 

2.9 

0 

0 

3.5 

.9 

b|    5 

f  3.8 

UTILIZATION 

Effectiveness  of  Technical  Knowledge  and  Organhation. 
Direction,  Control  and  Accounting  Factors 

Ul 

•4 

u? 

i 

20 

•2 

•2 

U3 

i 

80 

•  8 

•8 

U4 

5 

20 

1 

1. 

U5 

2 

20 

.4 

.4 

U6 

20 

.2 

.2 

7 

4 

20 

•  8 

-8 

U8 

60 

1.2 

•I 

U9 

I 

40 

•8 

.8 

UIO 

ZO 

.2 

j 

20 

.2 

.4 

3 

20 

•  6 

.6 

UI2 

6 

20 

1.2 

•2 

uii 

3 

20 

.6 

.6 

U  14 

4 

20 

•8 

1 

20 

•2 

ll  :r. 

1-5 

0 

.5 

0 

o 

UK 

3 

JO 

•  6 

15 

20 

.} 

.5 

20 

.1 

un 

2 

1.0 

0 

o 

UI6 

1  5 

20 

.3 

.5 

:  : 

.1 

Z 

4 

TOTAL 

44 

10.1 

3.5 

7 

2.S 

•  Z 

c    -o 

°      ' 

GRAND  TOTAL 

6i 

18.6 

10.25 

2.05 

2.15 

JS 

d     10X3 

h   22 

METAL  TEADES  INDUSTRY 


231 


FIELD    REPORT  EVALUATION 

COMMITTEE    ON    ELIMINATION     OF    WASTE 

IN    INDUSTRY 
L 

3    SOCIETIES^ 

OF 
THE    FEDERATED    AMERICAN    ENGINEERINC 

INDUSTRY  MetalTrade&       PLANT  NO.  9                         EST.BY^S-s.  '                                   DATE  3//S/2I 

,_    ©  +®  +  (D  =  ®  Excellent  =  0%  Waste     Po0r*  60°/oV/aste              a-t-b  +  C.d  =  I00°/o 
£    ®  +  ©  +  ®     ®  ^d       :g°o  ;;        Bod-  80%Waste             e  t  f  +  9  .  h-   °/oWaste 

CAUSES 

Guide 

RESPONSIBILITIES 

TOTAL  WASTE 

for 

MANAGEMENT 

Assigned 

Points 
Waste 

Feld 
nvesti- 

teigned 
Points 

Esi°lo 
Waste 

Points 
Waste 

Assigned 

Points 

Est.°lo 
Waste 

Points 
fete 

Assigned 
Points 

Est.°|o 
Waste 

Points 
Waste 

1 

4 

3 

4 

& 

7 

8 

g 

to 

II 

12 

13 

14 

_T 

Kl 

1 

80 

.8 

.8 

c. 

K2 

4 

20 

•  8 

.8 

rt 

K3 

Is- 

K4 

| 

40 

•4 

•  4 

•g  -5 

KS 

J 

0 

0 

K6 

| 

60 

.6 

•  6 

?'-§ 

3 

80 

as 

2.4 

£3 

K8 

zl^ 

K9 

1 

60 

•6 

.& 

o  §-§ 

KIO 

Kll 

h-    T3  ^- 

KIZ 

3 

40 

1 

20 

.2 

•  2 

<  £;§ 

KI3 

1 

0 

i 

20 

.2 

•2 

K  !4 

-|| 

Z.&J 

<  -g'S 

K  15 

t 

0 

K!6 

KIT 

I 

0 

KI8 

i 

40 

.4 

.4 

K     S>& 

KI9 

4 

0 

-u 

-S   T3 

•fi  § 

KtO 

1 

0 

K21 

1 

0 

11 

1   E 

§   1 

|| 

TOTAU 

21 

5.6 

4 

•  Z 

z 

•  6 

a]  21 

e  6.4 

Tl 

1 

0 

1 

20 

.& 

.6 

Nl  C  AL 

Bering  Knowledge 
antand  Materials 

T2 

40 

1.2 

1.2 

73 

0 

T4 

0 

TS 

o 

'& 

0 

1 

0 

1 

0 

TECH 

Available  Engi 
astoProduct(P 

TOTAU 

23 

1.2 

4 

•  6 

b|2T 

f|,.8 

c 
.2 

1 

£> 
o  ^ 

Z    "c     o 

°ll 

sfl 

U  1 

60 

1.8 

1.8 

u? 

0 

I 

0 

U3 

^o 

.2 

.2 

4 

60 

3.6 

3.6 

5 

0 

G 

1 

0 

1 

60 

3 

3 

8 

.2 

•2 

9 

20 

.6 

•6 

10 

40 

•8 

.8 

,1 

2 

0 

12 

0 

13 

o 

4 

0 

U  T  1  L  1 

Effectiveness  of  Technicc. 
Direction,  Control  and  Ace 

15 

?0 

.2 

•2 

16 

0 

1 

0 

n 

2 

0 

1 

0 

UI8 

& 

0 

TOTAL 

40 

10.4 

I 

0 

4 

0 

C   46 

9  10.4 

GRAND  TOTAL 

84 

1 

n.2 

6 

.2     1    10 

kj 

d    100 

h  18.6 

232 


WASTE  IN  INDUSTRY 


FIELD    REPORT  EVALUATION 

COMMITTEE    ON    ELIMINATION    OF   WASTE    IN    INDUSTRY 
AMERICAN    ENGNEERING    COUNCIL 
OF 

THE  FEDERATED  AMERICAN  ENGINEERING  SOCIETIES 

INDUSTRY  Mela/Trades        PLANT  NO.  10                         EST.  BY  P.6.S.  Jr.                               DATE 

>-   0+®  +  ®-®  E*celtenV=0%Wast«     p0or-60°|oWastt;              a+b+c.d=  100% 

ifl 

HI 

«/> 

U 

Guide 
Questions 

R 

ESPONSI  B  1  LITI 

ES                                                       1  TOTAL  WASTE 

for 

Field 
Investi- 
gator 

Assigned 

Est.0lo 
Waste 

Points 
Waste 

Pomts 

Est.°lo 
Waste 

Points 
Waste 

Assigned 
Pomts 

Estofe 
Waste 

Points 
Waste 

Mig^d 

Points 
Waste 

Points 

2 

S 

4 

5 

6 

7 

8 

9 

10 

11 

13 

IS 

14 

ORGANIZATION 

Mechanism  of  Industry  as  toType,Methods(PaperWork)and  Personnel, 
Assignmentand  Discharge  of  Respons'tbi  lity  and  Relationship 

Kl 

K2 

4 

20 

.8 

.8 

K3 

K4 

0 

KJ 

0 

Kb 

40 

.4 

.4 

K7 

5 

60 

3.0 

10. 

K8 

K9 

1 

40 

•4 

i4> 

KIO 

KH 

KB 

1 

4-0 

.4 

2 

4O 

.8 

i 

20 

.? 

.4 

KI3 

I 

JO 

.2 

2 

20 

.4. 

.6 

KI4 

1 

0 

0 

KIS 

KJG 

1 

0 

KIT 

I 

0 

KIS 

1 

20 

•E 

.2 

K19 

2 

40 

.8 

•8 

KIO 

( 

0 

KZI 

2 

20 

.4 

.4- 

TOTAL 

70 

(,.i 

1 

1.2 

3 

.6 

*|  30 

e|8.o 

n 

f 

Tl 

t 

0 

2 

70 

.4 

TJ 

•} 

20 

•b 

-6 

T3 

0 

T+ 

4 

20 

.8 

•8 

£  31 

TS 

2 

6 

2  ?! 

TC 

3 

JO 

•6 

•6 

T^ 

( 

0 

2 

0 

z  |  § 

I  -o^. 

UJ   _*•§ 

-  11 

|* 

z$ 

TOTAL 

2 

2.0 

4 

.4 

H» 

f|2.4 

ui 

60 

1.8 

1.8 

• 

U2 

0 

2 

zo 

,4 

.4- 

.0 

UJ 

20 

.E 

T 

o 

U4 

60 

4.8 

4.8 

U5 

20 

•2 

•2 

U6 

0 

1 

20 

.E 

.2 

U7 

60 

3.6 

3  G 

f 
1  I 

U8 

Z  §1 

U9 

JO 

.2 

1 

0 

.J 

o  ft£ 

UK) 

M 

•2 

.2 

°-S* 

U  II 

$ 

4-0 

-1.2 

12. 

*-  *  •- 

OK 

UI3 

UI* 

•  2 

•  I 

~*I  * 

UI6 

1 

0 

J  -5"c 

HO 

s 

1 

-•s? 

ui8 

z 

o 

II 

*g 

si 

TOTAL 

36 

11.2 

3 

.2 

6 

1.6 

C|45 

3  13.0 

GRAND  TOTAL 

T7 

19.4 

10 

1.4 

a 

2.6 

djmo 

1  U.* 

THE  METAL  TRADES  INDUSTRY 


233 


FIELD     REPORT  EVALUATION 

COMMITTEE    ON    ELIMINATION    OF   WASTE     IN    INDUSTRY 
AMERICAN     ENGINEERING    COUNCIL 
OF 

INDUSTRY  Metal  Trades       PLANT  NO.  //                           EST.  BY  H.J.B.                                      DATE  4/6/Zl 

>-    ®  +  (D  +  ®  -  ®  Excellent-0°/o  Waste      Poor=  60°/o  Waste               a  +  b  +  C  =  d  =  I00°/o 
S    ®  +  ®  +  @  -  @  fair        S  ".         Bad  =  80°|oV/aste               e  +  f  +  9  =  h  =    °/o  Waste 

CAUSES 

Guide 

R  1 

ISPONSIBILITI 

.S 

TOTAL 

KASTE 

for 
Field 
Investi- 

Assigned 
Points 

Est.°|o 
Waste 

Points 
Waste 

Assigned 
Points 

Est.°/o 
Waste 

Points 
Waste 

££? 

Est.°|a 
Waste 

Points 
Waste 

Assigned 
Points 

Waste 

ORGANI  7ATION 

Mechanism  of  Industry  as  to  Type,  Methods  (Paper  Work  )  and  Personnel, 
Assignment  and  Discharge  of  Responsibility  and.  Relationship 

0 

0 

K2 

0 

0 

3 

60 

.6 

6 

i 

60 

1.2 

.2 

40 

•8 

.8 

! 

0 

0 

a 

0 

.5 

0 

0 

K8 

0 

0 

kg 

0 

.25 

0 

•25 

0 

0 

KIO 

0 

\ 

0 

0 

KH 

0 

.5 

0 

0 

KIZ 

40 

1.2 

40 

.4 

.6 

KlJ 

?0 

.2 

20 

t( 

.5 

20 

.1 

•4 

14 

0 

0 

•  5 

0 

0 

<I5 

0 

16 

0 

n 

0 

0 

0 

18 

0 

0 

0 

19 

0 

0 

0 

K20 

0 

• 

o 

.25 

0 

o 

K2I 

0 

0 

•25 

0 

0 

TOTAL 

2 

I 

6.25 

.5 

1.15 

.1 

a|35 

e|« 

fj 

"1 

to 

•1 

.5 

20 

.1 

T2 

JO 

.6 

j 

T3 

10 

4 

2 

E  CH  N  1  C  A  L 

able  Eng'meenngKnow 
oduct^Plantand  Mater 

'4 

Q 

.5 

0 

3 

T5 

?0 

_4 

2 

T6 

20 

.4 

| 

20 

.2 

3 

0 

j 

o 

I 

) 

^ 

TOTAL 

15 

1.9 

0 

5 

.1 

^20 

f  2.2 

| 

Ul 

.4 

us 

ui 

80 

.8 

J4 

5 

20 

1 

UTILIZATION 

jeness  of  Technical  Knowledge  and  Organi 
m}  Control  and  Accounting  Factors 

U5 

0 

J6 

0 

U7 

20 

.8 

I  8 

60 

.t 

U9       . 

20 

.1 

UIO 

20 

.1 

.5 

20 

.1 

l(! 

0 

0 

UI3 

o 

Ui* 

20 

.8 

1 

20 

.2 

UI5. 

29 

•1 

.5 

20 

.1 

UI6 

0 

I.S 

0 

.5 

0 

in 

.5 

0 

1  5 

0 

UI8 

0 

•  5 

o 

11 

TOTAL 

39 

4.8 

J 

.} 

1 

.1 

C    45 

9|5.2 

GRANOTOTAL 

8 

IO.T 

9.t5   |             | 

.8 

9.15 

.5 

d  100 

,1,2, 

234 


WASTE  IN  INDUSTRY 


FIELD    REPORT  EVALUATION 

COMMITTEE    ON    ELIMINAT   ON    OF    WASTE     IN    INDUSTRY 
AMERICAN     ENGINEERING    COUNCIL 
OF 

INDUSTRY  Metal  Trades       PLANT  HO.  /2                         EST.BVMJ.fl.                                   DATE  4/e/t/ 

(Ti      fi\\      f^\      (75^  E  tell 

:nt=0c 

oWaste         Poor  =  60%  Waste           a  -t  b  +  c  *  d  -  100%  " 
oj£  "            Bad  =  80%  Waste           e  +  f+g  =  h=    %  Waste 

w                                        Good 

CAUSES 

Guide 
Questions 

R 

.SPONSIB1LITI 

:s 

TOTAL  WASTE 

Field 

^ssigne< 

Points 

Est.°|o 
Waste' 

Waste' 

Poll  *J 

Was 

£ 

Points 
Waste 

'pomtt1 

Est0/o 
Waste 

Points 
Waste 

Points 

Points 
Was* 

ORSANIIATION 

Mechanism  of  Industry  astoType,Methods(PaperWorl<)and  Personnel, 
Assignment  and  Discharge  of  Responsibility  and  Relationship 

K2 

l 

80 

•9 

8 

K3 

0 

K4 

2 

80 

1.6 

1.6 

K5 

K6 

80 

KT 

80 

1 

80 

-8 

K8 

K9 

80 

.25 

80 

.25 

80 

.2 

KIO 

40 

1      ' 

.2 

KM 

,s 

80 

1. 

.5 

80 

1 

KI2 

5 

80 

1.5 

BO 

l 

KIJ 

40 

40 

| 

40 

•  4 

I 

Kt4 

60 

I 

.5 

60 

.5 

60 

.3 

KIS 

KIT 

3 

60 

1.8 

2 

60 

1.2 

KI8 

3.5 

0 

1.5 

0 

K19 

.5 

60 

-3 

.5 

60 

.3 

K20 

K2I 

TOTAL 

23.5 

13.3 

9.T5 

5.2 

1.75 

.9 

a  35 

e  19.4 

TECHN  1C  A  U 

Available  Engineering  Knowledge 
astoProduct.Plantand  Materials 

Tl 

20 

.2 

1 

20 

.2 

.4 

T2 

1 

80 

1.6 

6 

40 

.4 

.4 

T4 

.5 

80 

1.2 

.5 

80 

.4 

1  6 

T5 

0 

T6 

1.5 

80 

1.2 

.5 

80 

.4 

•  .6 

TT 

4 

20 

•  8 

2 

20 

•  4 

1.2 

JOTAL 

1 

5.4 

0 

4 

1.4 

b|,5 

F|e.8 

DN 

edge  and  Organhation. 
ig  Factors 

Ul 

80 

us 

1.6 

U2 

20 

.2 

•  2 

80 

1.6 

1.6 

U4 

60 

2.4- 

2.4 

U5 

40 

.8 

.8 

US 

60 

1.2 

1.2 

UT 

80 

4.0 

4. 

US 

80 

.6 

1 

60 

.6 

.6 

U9 

80 

.9 

.6 

UIO 

60 

.6 

.Ull 

60 

2.4 

2.4 

UTI  LIZ  ATI 

/eness  of  Technical  Know 
3n,Control  and  Accounti 

UIJ 

80 

.e 

UI4 

I 

60 

•9 

.5 

60 

.3 

.2 

U15 

1.5 

80 

1-2 

.5 

80 

.4 

U 

UI6 

4 

40 

.6 

.5 

40 

•  2 

1.5 

40 

•  6 

Z.4 

IU3 

2.5 

20 

.5 

1  5 

20 

.3 

•  8 

UI8 

.5 

40 

•6 

•5 

^ 

.6 

U 

uj  o 

TOTAL 

44 

...  ,- 

Z 

I.I 

4 

1.5 

c|  50 

g  ••. 

GRAND  TOTAL 

ms 

46.  J 

II.T5 

6.3 

9.T5 

J.8 

d|  oo 

h   56.4 

THE  METAL  TRADES  INDUSTRY 


235 


FIELD  -REPORT  EVALUATION 

COMMITTEE    ON    ELIM   NATION    OF    WASTE     IN    INDUSTRY 
AMERICAN    ENGINEERING    COUNC   L 
OF 
THE    FEDERATED  AMERICAN    ENGINEERING  SOC  ETIES 

INDUSTRY  /fe/fr/7WftS        PLANT  NO.  13                          EST.BY^|S-                                      DATE  •*////£/ 

V    ®-®+®~®  Excellent-=00/o  Waste     Poor=600/o  Waste              a  +  b+C=d  =  100% 
S    ®  4.  ®  +  ®  .  ®  Fair         "SS  "         Bad  '  8°°/0  Wa5te              C  +  f  +  g  =  h  =    %  Waste 

CAUSES 

Guide 
Questions 

R  E 

SPONSIBIUTIE 

S 

TOTAL  WASTE 

for 

Field 
Investi- 

dsr 

Est.°/o 
VJaste 

Points 
Waste 

M 

Esi°/o 
Waste 

Points 
Waste 

Writs 

Est.°[o 
Waste 

Points 
Waste 

Assigned 
Po  nte 

Points 
Waste 

gator 

i 

3 

4 

6 

6 

T 

8 

9 

10 

II 

12 

15 

14 

ORGANIZATION 

Mechanism  of  Industry  astoType,Methods(PoperWork)and  Personnel, 
Assignmentand  Discharge  of  Responsibility  and  Relationship 

Kl 

Q 

o 

K2 

20 

.6 

.6 

K3 

0 

0 

K4 

?0 

.2 

.2 

K5 

0 

0 

KG 

20 

•? 

-2 

K7 

40 

•  8 

•8 

K8 

20 

.2 

•s 

K9 

EO 

.2 

.2 

KIO 

0 

Kll 

0 

KI2 

80 

1.6 

2 

80 

i.e 

3.S 

•  4 

40 

.4 

e 

40 

•  8 

1.6 

KI4 

20 

.2 

•?. 

KI5 

0 

KIG 

0 

l<\7 

60 

1.2 

2 

60 

I.E 

2 

60 

1.2 

3.S 

KI8 

0 

KI9 

0 

KZO 

80 

1.6 

.6 

US] 

40 

•8 

.8 

TOTAL 

?1 

8.0 

5 

3.? 

4- 

2.0 

C,|36 

e  ,« 

|| 

|| 
If 

4 

20 

.8 

•  8 

T2 

20 

•8 

T3 

0 

T4 

20 

.8 

.8 

T5 

0 

T6 

?0 

.4 

.4 

fel 

c  "E 

T7 

20 

1.2 

2 

80 

.4 

.6 

°S 
11 

TOTAL 

25 

4.0 

2 

.4 

Jti 

f|4.4 

ON 

»ledge  and  Organisation, 
ng  Factors 

Ul 

2 

0 

U2 

0 

2 

40 

•8 

•  8 

U3 

U4 

3 

60 

1.8 

1.8 

U5 

3 

40 

1.2 

.2 

U6 

1 

0 

Ul 

3 

80 

2 

7.4 

U8 

I 

BO 

1 

80 

•  8_J 

1.6 

U9 

1 

40 

.4 

U!0 

0 

Ull 

2 

?0 

1 

20 

•  Z 

.e 

Ul! 

5 

20 

1 

1  0 

IUTILIZATI 

Effectiveness  of  Technical  Knov 
DirectioryControl  and  Account 

ui3 

40 

1 

.6 

UI4 

2 

20 

.4 

UI5 

0 

UI6 

2 

40 

•  8 

.8 

un 

0 

UI8 

1 

40 

,  .4 

•4 

TOTAL 

33 

11.2 

1 

•8 

3 

1.0 

c   n 

g  13.0 

GRAND  TOTAL 

85 

2J.2 

& 

4.0 

9 

3.4 

d  100 

H30.6 

236 


WASTE  IN  INDUSTRY 


FIELD    REPORT  EVALUATION 

COMMITTEE  ON  ELIM  IN  ATION  OF  WASTE   IN   INDUSTRY 
AMERICAN    ENG   NEER  NG  COUNC    L 
OF 
THE   FEDERATED    AMERICAN    ENGINEERING  SOCIETIES 

INDUSTRY  Meta/  Trades        PLANT  NO.  It                          EST.BY  P.G.S.Jr.                                DATE  3/n/Zi 

>-   ©  +  ®  +  ®  -  ®  Excellent-  0°/o  Waste      Poor  *  60°/o  Waste                 a  +  b  +  c  =  d  -  I00°/0 
S®-®>®-@Fa,r         S    :           Bod=80%Waste                   e  +  f  *g  -h  -     °/o  Waste 

CAUSES 

Guide 
Questions 
for 
Field 
Investi- 

RESPONSIBILITIES 

TOTAL  WAS1E 

MANAGEMENT 

Assigned 
Points 

Wast* 

Points 

|Est.0/o 
Waste 

Points 
Waste 

tenned 

PomH 

Es,t.°/o 
Waste 

Points 
Wast« 

Assigned 

Est.°/o 
Waste 

Points 
Waste 

Points 

kTION 

iods(Paper  Wortyand  Personnel 
lity  and  Relationship 

Kl 

K2 

6 

0 

K3 

2 

0 

K5 

K6 

t 

20 

.4 

.+ 

K7 

5 

40 

Z 

?.o 

K8 

K9 

1 

20 

.2 

-2 

KIO 

KM 

KI2 

J 

zo 

.4 

60 

.6 

j 

£ 

1.6 

OR  G  A  N  1  2f 

Mechanism  of  Industry  asto  Type,  Met 
Assignment  and  Discharge  of  Responsib 

KI5 

I 

0 

20 

•  4 

1 

eo 

•6 

i.O 

KI4 

0 

l 

0 

KI5 

eo 

•6 

•C 

KI7 

0 

KI8 

20 

•2 

.2 

KI9 

Z 

60 

1.2 

.2 

K20 

| 

40 

•4 

.4 

Ktl 

J 

40 

•8 

•8 

TOTAL 

25 

5.4 

1 

1.8 

3 

1.2 

E 

ej.4 

TECHN  1  C  A  L 

Available  Engineering  Knowledge 
asto  Product,  Plantand  Materials 

Tl 

J 

•20 

.6 

1 

0 

4 

.6 

T2 

1 

20 

•2 

• 

1 

•2 

T) 

0 

1 

T4 

5 

10 

1.0 

s 

1.0 

T5 

1 

0 

1 

T6 

| 

?0 

•  4 

2 

.4 

T7 

5 

10 

1.0 

I 

4.0 

•4 

& 

1.4 

TOTAL 

18 

3.2 

0 

2 

.4 

b|20 

g 

UTILIZATION 

Effectiveness  of  Technical  Knowledge  and  Organization. 
Direction,  Control  and  Accounting  Factors 

Ul 

5 

10 

1 

18 

£ 

0 

i 

40 

.4 

•4 

UJ 

o 

U4 

a 

to 

I.G 

1.6 

U5 

i 

0 

.2 

.2 

U6 

i 

i 

JO 

.2 

.7 

UT 

6 

0 

74 

2.4 

U8 

US 

1 

i 

0 

UIO 

? 

Ull 

1 

2 

40 

.8 

.8 

Ult 

I 

Ull 

1 

?0 

.J 

.2 

UI4 

1 

0 

UIB 

1 

40 

•4 

•4 

utc 

1 

0 

l 

0 

un 

1 

M 

.2 

1 

0 

J 

•Z 

UI8 

t 

0 

2 

TOTAL 

31 

5.6 

3 

•  2 

5 

14 

C    45 

9[™ 

GRAND  TOTAL 

80 

I4.Z 

10 

2.0 

10 

3.2 

d  100 

h|:,4 

THE  METAL  TRADES  INDUSTRY 


237 


FIELD     REPORT   EVALUATION 

COMMITTEE  ON    ELIMINATION   OF   WASTE   IN    INDUSTRY 
AMERICAN   ENGINEERING  COUNC  L 
OF 
THE    FEDERATED   AMERICAN    ENGINEERING   SOCIETIES 

INDUSTRY/%to/7r<W«         PLANT  NO.  IS                          EST.  BY  H.J.  8.                                   DK\E4/6frr 

y    ©  +  ®  +  ®-  ©Excellent  -tffc  Waste      poo^QO/oWaste                         a  +  b  +C  =d  -  I00°lo 
*   ®  +  ®+®-@  Fafr          =40  °/o  »         Bad=80°/o  Waste                        e->  f  +  g  -  h  -   °Jo  Waste 

£ 

M 
3 
< 
o 

Guide 

Questions 
for 

RESPONSIB1HTIES 

TOTAL  WASTE 

LABOR 

OUTSIDE  CONT    ACTS 

faints 
Waste 

Field 
Investi- 
gator 

tekjned 
Points 

Est.°/o 
Waste 

Points 

Waste 

Assigned 

PoTnts 

Est.°|o 
Waste 

Points 
Waste 

tesigned 
Points 

Wai 

^° 

Points 

Waste 

*c 

N 

rW3rk)and  Personnel, 
1  Relationship 

K2 

70 

.4 

K3 

£0 

•  C 

K4 

60 

>6 

K5 

80 

•  8 

K6 

0 

Kl 

40 

A 

.5 

40 

.2 

K8 

0 

OR6ANI7AT10 

Mechanism  of  Industry  asto  Type,  Methods(Pape 
Assignment  and  Discharge  of  Responsibility  an 

0 

0 

—  -  — 

Kll 

.5 

20 

.  1 

to 

.1 

K12 

60 

2.4 

60 

.6 

Kl} 

40 

.4 

40 

t2 

.5 

40 

» 

KJ4 

20 

.2 

20 

.1 

.5 

20 

.1 

KJ5 

K16 

KIT 

1.5 

20 

,  3 

70 

.2 

5 

KI8 

1.5 

0 

0 

5 

KI9 

1.5 

40 

.6 

40 

.£ 

K20 

0.5 

20 

.1 

. 

20 

.05 

.25 

20 

.05 

K2I 

1-5 

20 

tj 

.5 

20 

, 

TOTAL 

76 

1 

6.15 

1.15 

2^5 

0.55 

a|35 

e  9.9 

TECHNICAL 

Available  Engineering  Knowledge 
as  to  Product,  Plantand  Materials 

T| 

.5 

•20 

.5 

20 

^1 

.4 

T2 

•  3 

40 

1 

,2 

TJ 

Z 

20 

.4 

14 

IS 

20 

.S 

20 

.) 

•6 

T5 

I 

20 

16 

15 

60 

.5 

60 

.3 

.2 

TT 

3.5 

0 

2.5 

0 

0 

TOTAL 

16 

3.1 

0 

4 

.5 

J* 

f   4.2 

UTILIZATION 

Effectiveness  of  Technical  Knowledge  and  Organization. 
Direction.Control  and  Accounting  Factors 

Ul 

1 

60 

•  6 

Ul 

us 

1 

80 

•8 

U4 

6 

20 

1.2 

U5 

0 

U6 

2 

0 

Ul 

20 

•  8 

U8 

1 

GO 

•6 

U9 

40 

UIO 

.5 

20 

^ 

.5 

20 

.1 

Ull 

4 

40 

UIZ 

5 

0 

UI3 

3 

20 

Ol4 

3 

20 

1 

•20 

.2 

UI5 

.5 

20 

.5 

20 

.] 

UI6 

2.5 

20 

j  5 

20 

.3 

, 

20 

.2 

un 

2 

0 

1 

0 

UI8 

1.5 

0 

.5 

0 

TOTAL 

39 

1.9 

3 

.6 

3 

•  3 

C    45 

9   B.8 

GRANP  TOTAL 

81 

19-2 

915 

2.15. 

9.25 

1.15 

d  100 

h   22.9 

238 


WASTE  IN  INDUSTRY 


FIELD    REPORT  EVALUATION 

COMMITTEE    ON     ELIMINAT   ON    OF   WASTE     IN    INDUSTRY 
AMERCAN     ENGINEERING    COUNCL 
OF 
THE    FEDERATED   AMER   CAN   ENGINEERING  SOC  ETIES 

INDUSTRY  Wefa/  'Trades        PLANT  NO.  41                          EST.BY                                                 DATE  3/ZS/2/ 

f    0  +  (D  +  (D  =  ®  Excellent=0%  Waste     p0or=60°/oWaste              a  +  b  +c  =  d  =100% 
i£    /2)  -t-  (fa  -t_  ft5)  =  (ji)  na;r         -4QO/0   \         Bad  =  80  °/o  Waste              €+'f-t-g«h=    °/o  Waste 

UJ 

in 

< 

Guide 

RESPONSIBILITIES 

TOTAL  WASTE 

for 

MANAGEMENT 

LABOR 

Assigned 

Points 
Waste 

Field 
Invest!  - 

Assigned 
Points 

Est.°|o 
Waste 

Points 
Waste 

Assignee 
Points 

Esr. 

Was 

r'f 

Waste 

Assigned 
Points 

Est.°!o 
Waste 

Fonts 
Waste 

1 

Kl 

5 

20 

.300 

0 

0 

0 

KJ 

o 

20 

•  400 

0 

0 

0 

0 

K3 

5 

40 

.600 

0 

0 

0 

5 

40 

.600 

0 

0 

0 

K5 

n 

20 

•400 

0 

0 

0 

K6 

5 

20 

•  300 

0 

0 

o 

I 

K7 

1.5 

20 

•  300 

1 

20 

.200 

0 

K8 

1.0 

40 

•400 

1 

80 

•800 

4.00 

W 

•400 

0.5 

20 

•  IQL 

0 

KIO 

0 

20 

.200 

60 

•  600 

0 

Kll 

.0 

40 

.400 

0.5 

20 

•  00 

KI2 

1.0 

60 

RQO 

1 

40 

.400 

0 

0  R  6  A  N  1  I  A 

Mechanismof  Industry  as  toTupe.Methc 
Assignmentand  Discharge  of  Responsib 

KIJ 

20 

•  300 

40 

.400 

, 

KI4- 

.0 

20 

.200 

20 

•200 

0 

KI5 

o 

0 

.000 

0 

.000 

Q 

KI6 

.0 

0 

.000 

I 

0 

•000 

0 

KIT 

0 

to 

.200 

20 

.200 

4 

40 

KI8 

0.5 

20 

.100 

20 

.200 

400 

KI9 

1.5 

20 

.300 

0 

0 

.000 

0 

K20 

0.8 

40 

•320 

1 

20 

•200 

0 

K21 

0.2 

20 

•  400 

1 

20 

.200 

0 

TOTAL 

25 

6.72 

3 

3.60 

T 

4.8 

a   A; 

e  15.12 

TECHNICAL 

Available  Engineering  Knowledge 
as  to  Product.Plantand  Materials 

Tl 

l.O 

0 

0 

0 

1.0 

20 

200 

T2 

1.0 

40 

•400 

0 

0 

T5 

n 

10 

.400 

0 

0 

T4 

.0 

40 

.400 

0 

o 

T5 

.0 

20 

.200 

0 

0 

T6 

o 

40 

400 

0 

0 

TT. 

.5 

40 

.&po 

0 

1 

20 

.300 

TOTAL 

7.5 

2.4 

0 

0 

L? 

O.S 

b  :o 

i  :  ':  •< 

UT  1  LI  1  A  T  1  ON 

Effectiveness  of  Technical  Knowledge  and  Organilation. 
Direction,  Control  and  Accounting  Factors 

UI 

2.0 

80 

1.60 

0 

0 

60 

.60 

40 

0.80 

0 

40 

•40 

U3 

1.5 

20 

O.JO 

0 

0 

o 

U4 

2.0 

20 

0.40 

0 

0 

U5 

.5 

20 

0.30 

0 

0 

U6 

20 

0.30 

0 

0 

U7 

25 

80 

2.00 

0 

60 

) 

UB 

1.5 

20 

0.30 

20 

0.20 

0 

US 

3.0 

40 

1.20 

60 

1.20 

0 

UIO 

3.0 

40 

1.20 

60 

1.20 

0 

UN 

7.0 

20 

0.40 

0 

0.00 

o 

UI2 

7.0 

0.40 

.5 

20 

0.10 

0 

UI3 

.5 

20 

030 

20 

0.10 

0 

UI4 

1.5 

20 

0.30 

20 

0.10 

0 

UI5 

7.0 

20 

0.40 

20 

0.02 

0 

IDS 

t.O 

20 

0.40 

40 

0-08 

0 

UI7 

2.0 

20 

0.40 

20 

0.02 

0 

UI8 

20 

20 

0.40 

20 

0.02 

0 

0 

TOTAL 

35 

11.4 

T 

3.04 

3 

.60 

C     45 

9,  -  -  '• 

GRAND  TOTAL 

'*•<  •-, 

20.52 

•zo 

6.64 

12.5 

6.90 

d  100 

h:  14.06 

THE  METAL  TRADES  INDUSTRY 


239 


FIELD     REPORT    EVALUATION 

INDUSTRY  Metal  Trades       PLANT  NO.                                 EST.  BY                                                     DATE 

>    ©-!-©  +  ©-©  Excellent  =0°/0  Waste          Poor  =60  c/o  Waste                     o  +  b  +C  -d  -lOOTo 

2  ©  +  ®  +  ©-.  ®  ^rd    :S£  :      B°«  -8°0/°  -           e  +f  ^  -»  -  °'°waste 

2 

in 

3 
< 

6u.de 

S 

TOTALWASTE 

for 

LABOR 

Ks.gned 
omts 

oints 
Waste 

Field 

Assigned 
Points 

tsf.°/o 
Waste 

Points 
Wostc 

Assigned 
Points 

Est°/o 
Waste 

Points 
Waste 

» 

Est  °/o 
Was  e 

Waste 

1 

2, 

5 

6 

13 

14 

_- 

Kl 

0.16 

o 

0 

0.15 

K2 

071 

0 

o 

0.71 

1 

K3 

031 

0 

o 

0.31  . 

&    * 

K4 

0.50 

0 

0 

O.SO 

I* 

K5 

04? 

0 

0 

0.46 

s  § 

K6 

0.37 

0.01 

0 

0.38 

?      0 

K7 

1  04 

"  •:• 

0 

1.1}    . 

l-i 

K8 

015 

0.05 

0.25 

0.45 

z    fc  ? 

K9 

037 

0.04 

0.03 

O.U 

o   11 

KIO 

0.09 

006 

0 

0.15   . 

Kl> 

0.21 

0.07 

0 

0.28 

•U2 

105 

0.69 

0.09, 

1.83 

<  £  - 

K13 

0.31 

0.07 

0.26 

K  t4 

0.18 

M6 

0.05 

O.Z9 

KI5 

0.00 

0.0i 

0.04 

0.07  . 

KI6 

001 

105 

0 

0.06 

0  R  G  A 

idustry  as  1oTi 
J  Discharge  of  R 

KI7 

0.58 

0.35 

0.14 

0.87 

me 

0.09 

0.08 

0.06 

0.23 

K19 

0.06 

0 

0.39 

K.20          ! 

c:<- 

0.03 

0.09 

0.36 

K2I 

0.36 

O.OJ 

O.OJ 

0.40 

P 

ll 

|! 

TOTAL 

7.3Z 

1.76 

1.05 

a 

e|,Q,, 

-  C  H  N  1  C  A  L 

e  Engineerins  Knowledge 
duct,Plantand  Materials 

Tl 

0.62 

0 

0.28 

0.90 

K 

0.85 

0 

0 

0.85 

T3 

O.JO 

0 

Q 

0.30 

T4 

us 

0 

0.  0 

1.33 

T5 

0.26 

0 

0.27 

r£ 

048 

0 

0.09 

0.57 

T7 

055 

o 

0.49 

1.04 

-§  | 

5   S 

TOTAL 

4.29 

0.01 

V'O 

bl 

H«6 

L  I  Z  A  T  1  O  N 

:hnical  Knowledge  and  Organization 

Ul 

1.15 

0 

0 

1.15 

U2 

o.u 

0 

0.3 

0.42 

U3 

0.63 

0 

0.«3 

U4 

1.84 

0 

1.84 

U5 

0.76' 

0 

0.76 

U6 

0.28 

0.11 

0.39 

U7 

I.T9 

c 

1.79 

U8 

0.52 

0.10 

0.62 

U9 

0.64 

0.08 

0.72 

UIO 

0.30 

0.15 

0.45 

Ull 

0.61 

0 

5 

0.96 

UlZ 

0.89 

0.06 

0.95 

UI3 

0.77 

0.06 

0.83 

UI4 

0.51 

0  II 

:••: 

UlS 

0.19 

0 

18 

0.27 

U16 

0.41 

0.09 

9 

C.59 

UI7 

0.14- 

0 

)4 

0.18 

a?I 

s  g 

g«S 

II 
II 

UI6 

0.15 

0 

0^ 

0.17 

TOTAL 

11.69 

0.76 

0.89 

c| 

gi3.34 

GRAND  TOTAL 

?3.30 

2.53 

J.88 

3 

h|2,7, 

CHAPTER  X 

THE  TEXTILE  INDUSTRY 

BY  W.  R.  BASSET 

Size  of  the  Textile  Industry. — The  textile  industry,  in  which  are 
included  the  makers  of  fabric  for  wearing  apparel,  carpets,  draperies, 
blankets,  sheetings  and  all  other  woven,  knitted  and  felted  fabrics,  leads 
all  other  industries  in  the  number  of  establishments  employing  more 
than  250  hands  each.  It  leads  all  industries  in  the  number  of  plants  the 
product  of  which  has  a  value  of  more  than  $1,000,000.  It  is  second  only 
to  the  steel  and  iron  industry  in  the  amount  of  capital  represented,  which 
is  now  conservatively  estimated  at  $3,500,000,000.  According  to  the 
1914  census,  the  value  of  its  products  was  $3,414,615,000.  The  estimate 
is  made  that  in  1920  the  value  of  its  products  was  very  close  to 
$7,000,000,000,  of  which  $499,279,939  was  exported.  Textile  plants  are 
scattered  from  coast  to  coast  and  number  12,964.  The  prosperity  and 
buying  power  of  the  managers  and  workers  in  the  textile  industry 
is,  therefore,  import  int  to  the  prosperity  of  American  industry  as  a 
whole. 

Scope  and  Limitations  of  Investigation. — In  order  to  obtain  an  idea  of 
the  sources  of  waste  in  the  textile  industry,  an  assay  was  made  in  thirteen 
mills  manufacturing  woolen,  cotton  and  silk  cloth,  thrown  silk  and  knit 
goods. 

Most  of  the  mills  studied  are  in  Massachusetts,  New  York  and 
Pennsylvania.  There  is  a  sufficient  diversity  of  product  and  location, 
however,  to  warrant  at  least  a  tentative  appraisal  of  the  causes  and 
responsibilities  for  waste,  without  implying  thereby  that  these  findings 
represent  in  any  sense  a  complete  and  final  statement  of  the  case. 

All  the  questions  of  the  standard  questionnaire  were  found  to  be 
applicable  to  the  textile  industry,  except  question  T6  (Are  Tools  Stand- 
ardized?), which  was  therefore  omitted  from  the  final  evaluations  of 
waste.  In  six  of  the  investigations  a  list  of  additional  questions  was  used, 
as  being  of  collateral  interest  in  bringing  out  points  peculiar  to  this  industry. 
This  list  could  well  have  been  used  in  all  thirteen  investigations  and  is 

240 


THE  TEXTILE  INDUSTRY 


241 


given  in  Appendix  I  as  a  contribution  to  the  preparation  of  future 
questionnaires. 

Summary  of  Results  of  Investigation. — The  investigation  assessed 
percentages  of  waste  from  various  causes  against  each  plant  on  the 
basis  of  a  grouping  of  the  answers  to  the  questionnaire  as  shown  in  the 
"  Question  Number  "  column  of  Table  I  (Determination  of  Average  % 
Waste — Field  Report  Evaluation — Textile  Industry).  The  division  of 
responsibility  for  waste  under  the  three  heads  "  Management,"  "  Labor," 
and  "  Outside  Contacts  "  is  also  indicated  here  by  the  column  references 
to  Table  II  (Field  Report  Evaluation)  where  the  average  percentage  of 
waste  on  a  100%  basis  for  each  question  or  group  of  questions  in  Table  I 
is  converted  into  a  new  percentage  on  the  basis  of  assigned  points  of 
waste  as  indicated  in  Table  II.  Table  II,  that  is,  summarizes  the  essential 
figures. 


WASTE  (100%  ASSIGNED) 


Causes 

RESPONSIBILITIES 

Management 

Labor 

Outside  Contacts 

Total 

Assigned 

Charged 

Assigned 

Charged 

Assigned 

Charged 

Assigned 

Charged 

Organization.  . 
Technical  
Utilization.... 

Total  
Converted  to 

14.1 
20.0 
17.3 

7.3 
9.4 
8.0 

6.4 
0.0 
5.4 

2.5 
0.0 

2.2 

4.5 
25.0 
7.3 

1.9 
14.2 
3.7 

25.0 
45.0 
30.0 

11.7 
23.6 
13.9 

51.4 
(100.0) 

24.7 
(48.1) 

11.8 
(100.0) 

4.7 

(39.8) 

36.8 
(100.%) 

19.8 
(53.8) 

100.0 
(100.0) 

49.2 
(49.2) 

This  summary  indicates  that  the  plants  studied  have  been  only  50.8% 
successful  in  combating  waste  and  still  have  before  them  the  problem 
and  the  possibility  of  reducing  the  remaining  49.2%  to  zero.  Without 
attempting  to  assign  responsibility  for  the  wastes  discovered,  it  would 
appear  that  a  much  heavier  share  of  the  burden  must  be  borne  by  man- 
agement than  by  labor.  With  respect  to  the  responsibility  assessed 
against  "  Outside  Contacts,"  while  a  portion  of  this  doubtless  represents 
factors  in  the  situation  over  which  management  individually  has  little  or 
no  control,  yet  much  of  it  could  doubtless  be  overcome  through  concerted 
action  by  the  industry  as  a  whole,  and  to  that  extent  constitutes  a  charge 
against  management. 

Restated  in  a  slightly  different  form,  the  findings  of  the  field  report 
evaluations  work  out  to  the  following : 


242 


WASTE  IN  INDUSTRY 
RESPONSIBILITY  FOR  WASTE 


Chargeable  Against 

Per  Cent 

Per  Cent  of  Total 

Management  (largely  controllable  by  individual 
plant) 

24  7 

50  2 

Outside  contacts    (largely  controllable  by  the 
industry  as  a  whole) 

19  8 

40  2 

Labor  (largely  controllable  by  labor  itself)  .      ... 

4  7 

9  6 

49.2 

100.0 

Management,  then,  appears  to  be  responsible  for  considerably  more 
than  half  of  all  the  waste  discovered,  while  labor  seems  to  be  a  contribu- 
tory factor  in  approximately  a  tenth  of  the  total. 

Table  III  summarizes  the  results  of  the  individual  field  report  evalua- 
tions for  each  plant  by  responsibilities  and  causes.  The  detailed  evalua- 
tion sheets  from  which  this  summary  was  taken  will  be  found  in  Appendix 
II.  The  order  in  which  the  plants  rank  on  the  basis  of  this  summary 
is  as  follows : 


Plant 

%  Waste 

Plant 

%  Waste 

#   1 

27.7 

#13 

51.9 

#  8 

28.0 

#   4 

55.0 

#  6 

36.3 

#   3 

56.3 

#10 

46.1 

#11 

56.9 

#12 

47.2 

#  5 

62.6 

#  9 

49.9 

#   7 

72.0 

#   2 

50.8 

Conclusion. — The  placing  of  responsibility  for  waste,  however,  is  in 
some  respects  the  least  important  phase  of  the  problem.  The  causes 
of  waste  and  their  elimination  are  the  vital  elements  of  the  situation. 
If  they  can  be  determined,  in  some  degree  at  least,  and  ways  and  means 
found  to  overcome  them,  then  this  investigation  may  be  said  to  have  been 
truly  worth  while  from  a  constructive  standpoint. 

W.  R.  BASSET. 


THE  TEXTILE  INDUSTRY 


TABLE  I — DETERMINATION  OF  AVERAGE  %  WASTE 

FIELD  REPORT  EVALUATION 

TEXTILE  INDUSTRY 


PLANT 

Class 

Question 
Number 

Column 

Average 

j 

#1 

#2 

#3 

#4 

#5 

#6 

#7 

#8 

#9 

#10 

#11 

#12 

#13 

K-l,  2,  3 

&4 

2 

50 

60 

60 

50 

80 

60 

90 

10 

90 

10 

100 

20 

80 

58 

K-5 

3 

000 

100 

100 

00 

100 

100 

100 

20 

100 

60 

100 

100 

60 

80 

11 

60 

60 

60 

60 

60 

60 

60 

60 

60 

60 

60 

60 

60 

60 

K-&,  7,  8, 

9,  11&12 

2 

40 

80 

80 

20 

80 

40 

90 

10 

60 

50 

90 

40 

80 

58 

6 

40 

50 

50 

20 

50 

40 

60 

10 

40 

40 

40 

40 

60 

42 

10 

40 

60 

60 

40 

60 

40 

60 

20 

40 

40 

40 

40 

60 

46 

K-10 

3 

20 

20 

40 

20 

20 

20 

20 

10 

20 

20 

20 

20 

20 

21 

7 

20 

20 

40 

20 

20 

20 

20 

000 

20 

000 

000 

20 

20 

27 

o 

11 

20 

40 

40 

40 

40 

40 

40 

10 

40 

20 

20 

40 

40 

33 

*> 

K-13,  14 

.2 

&  15 

2 

40 

40 

40 

40 

40 

40 

40 

10 

40 

20 

20 

40 

40 

35 

6 

40 

40 

40 

40 

40 

40 

40 

10 

40 

20 

20 

40 

40 

35 

10 

50 

50 

50 

50 

50 

50 

50 

20 

50 

40 

40 

50 

50 

46 

K-16 

3 

100 

100 

100 

100 

100 

100 

100 

50 

100 

100 

100 

20 

100 

90 

O 

7 

100 

100 

100 

00 

100 

100 

100 

50 

100 

100 

100 

10 

100 

89 

K-17&I8 

2 

000 

20 

20 

20 

40 

20 

50 

000 

20 

000 

50 

20 

20 

22 

6 

000 

20 

20 

20 

50 

40 

50 

10 

20 

000 

50 

20 

40 

26 

10 

000 

20 

20 

20 

60 

20 

20 

20 

20 

20 

50 

20 

60 

27 

K-19 

3 

30 

70 

40 

100 

40 

60 

100 

000 

100 

30 

100 

30 

100 

62 

K-20 

3 

10 

70 

20 

40 

50 

40 

70 

000 

80 

40 

50 

20 

40 

42 

7 

10 

70 

20 

20 

50 

40 

70 

10 

50 

20 

50 

40 

40 

38 

K-21 

3 

40 

60 

80 

40 

80 

60 

80 

000 

60 

40 

80 

20 

80 

55 

7 

40 

60 

80 

40 

40 

60 

80 

20 

40 

40 

80 

20 

80 

55 

T-l 

3 

20 

40 

40 

20 

40 

20 

20 

000 

30 

000 

20 

10 

30 

22 

J" 

T-2 

3 

40 

20 

100 

90 

70 

100 

100 

000 

40 

60 

50 

20 

90 

60 

T-3 

3 

90 

40 

40 

90 

70 

90 

90 

000 

60 

40 

40 

20 

80 

58 

d 

T-4 

3 

60 

60 

60 

60 

60 

60 

60 

20 

60 

60 

70 

60 

80 

59 

T-5 

3 

50 

30 

50 

20 

40 

20 

40 

20 

20 

40 

40 

20 

30 

32 

H 

*T-6 
T-7 

3 

10 

60 

70 

60 

70 

10 

80 

20 

40 

80 

60 

60 

40 

51 

11 

10 

70 

70 

70 

70 

10 

80 

60 

70 

60 

60 

70 

40 

57 

U-l 

3 

40 

60 

80 

100 

90 

100 

100 

10 

60 

20 

90 

70 

80 

71 

U-2 

3 

20 

20 

40 

40 

50 

10 

20 

20 

30 

20 

50 

40 

40 

31 

11 

50 

70 

70 

70 

50 

10 

80 

60 

80 

80 

60 

70 

60 

62 

U-3&8 

2 

50 

60 

100 

80 

80 

20 

80 

40 

100 

80 

100 

60 

80 

72 

6 

20 

40 

60 

60 

60 

20 

60 

20 

40 

60 

60 

40 

40 

45 

10 

40 

40 

80 

40 

80 

20 

80 

40 

80 

80 

80 

40 

40 

57 

£7-4  &  5 

2 

40 

20 

60 

80 

70 

40 

90 

10 

30 

60 

60 

60 

60 

52 

C7-6 

3 

90 

40 

40 

40 

80 

60 

80 

10 

40 

20 

60 

60 

80 

57 

U-7 

3 

30 

10 

10 

90 

80 

80 

100 

30 

20 

10 

60 

50 

80 

50 

11 

30 

50 

50 

50 

50 

60 

90 

60 

80 

60 

50 

60 

60 

58 

[7-9 

3 

40 

60 

60 

100 

60 

100 

100 

20 

100 

40 

60 

60 

100 

70 

U-W 

3 

50 

50 

40 

50 

50 

50 

100 

50 

50 

80 

60 

50 

50 

56 

e 

7 

50 

50 

50 

50 

70 

100 

100 

50 

80 

80 

80 

50 

50 

56 

11 

50 

50 

50 

50 

50 

50 

50 

50 

50 

80 

60 

50 

50 

53 

"c3 

u-n 

3 

20 

40 

20 

40 

20 

10 

60 

10 

50 

30 

60 

20 

20 

31 

N 

11 

40 

40 

40 

40 

40 

20 

60 

40 

60 

60 

60 

40 

40 

40 

5 

U-12 

3 

30 

20 

20 

40 

50 

60 

60 

20 

20 

30 

50 

20 

20 

34 

P 

7 

30 

20 

20 

40 

40 

40 

50 

20 

20 

40 

50 

20 

20 

32 

[7-13 

3 

20 

20 

20 

40 

60 

20 

60 

10 

000 

40 

40 

20 

20 

18 

7 

20 

20 

20 

40 

80 

20 

80 

10 

20 

40 

40 

20 

20 

34 

11 

20 

20 

20 

40 

60 

20 

80 

20 

20 

40 

40 

20 

20 

32 

[7-14 

3 

20 

20 

40 

20 

60 

000 

60 

20 

20 

20 

40 

40 

40 

31 

[7-15 

3 

000 

50 

20 

50 

40 

20 

20 

20 

20 

100 

50 

20 

20 

34 

11 

80 

80 

80 

80 

80 

80 

80 

80 

80 

80 

80 

80 

80 

80 

17-16 

3 

20 

60 

40 

40 

60 

40 

60 

10 

10 

40 

50 

40 

60 

48 

7 

40 

60 

40 

40 

60 

40 

80 

20 

20 

60 

50 

40 

40 

45 

11 

20 

40 

40 

40 

40 

20 

60 

20 

30 

40 

50 

40 

40 

37 

[7-17 

3 

10 

20 

40 

40 

30 

20 

40 

10 

10 

30 

30 

40 

40 

28 

7 

20 

40 

40 

40 

30 

30 

40 

20 

20 

50 

40 

40 

40 

35 

U-18 

3 

000 

20 

80 

60 

100 

40 

60 

10 

10 

40 

40 

70 

30 

4? 

*  Does  not  apply  to  Textile  Industry. 


244 


WASTE  IN  INDUSTRY 


& 

M 

| 

^ 

H 

i—  i 

j 

< 

s 

O 

i 

1 

1 

| 

I 

| 

s 

S 

1 

I—  FIELD  RE; 

ELIMINATION 

ICAN  ENGINEE 

OP 

D  AMERICAN  I 

3 

.1 

H 

1 

1 

1 

1 

« 

i 

t 

z 

IS 

S 

1 

g 
z 

6 

o 
« 

a" 

! 

1 

a 
5 

1 

^ 
1 

5 

J 

1 
jj 

£ 

1 

i 

>-" 
• 

E 

i 

a 
x 

r! 

D  i, 
"•  t 

I! 

.2 

a 

£ 

o  o 
£p5 

S 

a 

£ 

S5*%5 

°g§ 

II  II  II 

i 

he 

HOfe 
<§><§> 

n  n 
©(§) 
+  + 
0© 
+  + 
0© 

07 

* 
"3 

1 

^ji 

-S3 
£> 

^* 

t-         in        ~<«o            t^iooMccto 

*H                I-(                T)< 

c  2 

,  i1 

M 

0           O           <=>                         d      »O    O    WOO 

CQ         M         oo     ci            N          •*     'N^' 

RESPONSIBILITIES 

ODTBIDB  CONTACTS 

II 

g£ 

M 

co      t-   10        -i     :  co 

Est.  Per  Cent 
Waste 

s 

O                i       CO                      I           '•        '•                   '• 

'.             :'.:'. 

O 

to                   <D       •  r~ 

*         •                 •*          •    IN 

Assigned 
Points 

O 

>o         >o     co            e»       •  o             • 

M 

3 

4S.2 

II 

00 

-H'      0 

Est.  Per  Cent 
Waste 

l^ 

:   &          :   S    :    ^S 

«o 

IN          •                 10          •    (O            •     • 

if.          .                 CO          •    M 

Assigned 
Points 

IO 

N                           I-!         *   lH         >4    ' 

MANAGEMENT 

1! 
&* 

•* 

00            IN            CO       ^                 CO       CO    ^"    «•*« 

Est.  Per  Cent 
Waste 

CO 

§       :  S         :  g     S9!§ 

N 

S             S             8       S3    :  : 

g3 

II 

- 

O            10            O       U3                 O       CO    O    COOiO 
CO           r-i           •*'         '                i-i         '    ei       '•-< 

S         o 

•S.|«,3J 

iwf 

a    g 

M 

—  .  — 

t<  ^  ^  *  t<  fc«!  X  UJ  t<  U-  UJ  t<  fc)  t<  !<  t<  UJ  S<  S<  i<  UJ 

sasnvo 

•diqsnOTiBpH  pu«  ^{nqw 
-uodsa^j  jo  93JBqosiQ  puB  ^uainuSiesv 
'lauuogjaj  puB  (WOJi  -radwj)  epoqiajv 
•ad^x  0:>  8B  AJ^enpni  jo  tasmeqaaiv 
NOIXVZINVOHO 

A3X 

THE  TEXTILE  INDUSTRY 


245 


cOoOt-oOcft     00 
'  ^'  i-I  rt            CD 

g|r  2^-w^ 

co     oi 

00000       0 

cococococo     o 

O               OO         O    iOOO>OO>OOin>OiOOOO 

o     o 

i  § 

0       "3 

2 

2  J-"  |  :----;; 

t~        (30 
CO       O5 

2-         00     •     -COO       N     -Ot-     '•     '• 
irj     .     -UjTli       CO     -OOCO     •     • 

10 

!             «  :::::: 

0 
1C 

o 

CM 

^O                      OO     -C<|iO     *iO       t-i  O          * 

CO       00 

*•'  i 

'                   "      <N     -CO    *CO(N     '     -05  CO    - 

CN       •* 

j     ;  jH»ij*»j 

i     ;  !gi:iii;;ii; 

i     !i(5     !^     ^O>0     '•     -OO     '• 

2       - 

COOOt^OOCi      CO 
'  rt  r-(  r-<              IN 

2 

0      l> 

-'  '  ^  '- 

SiSSco   S 

Hco            •    IcS     •SScOCo2cOCO*cN3 

1  1  g  i  is  •  MM  M 

ooooo    o 

0 

oo      o  «oo«5>o-*oo>airaTj<ooo 

n  "*. 

sssselb  I 

,  

1  1 

to&bto&bbb&SSSSSSSSS 

SB  aSpajMOuji  3ui 
1VOINHO3X 

1 
Nbixvznixn    '                2 

246 


WASTE  IN  INDUSTRY 


A  3 


II 


$S 


o  co  c     o    co  —  i>  r-   co  co  co  »o  eo 


8  S  S  55 


(N    I>   1>   I>   l>   IN   O   "0  CO    10   10   l>   O   Tt< 


I>   t^   t>j   t>j   (N   O 


OWOOOOCNOOOOt>COOOOO>-HCO»O 
(NCO<Ni-icO<NCO       '(N'-i(N<NCO<N 


OOOOC^rHi-HOSCOWOOOOJCO'-IOS 


3    I! 

II    "* 

3  + 


t  ii 

II  o 

CO   t^  rH 

+  II  + 

<N    CO  OS 


T?B 

6  HP 


THE  TEXTILE  INDUSTRY  247 

APPENDIX  I 

Supplemental  Questions  for  Questionnaire 

Materials 

A.  Principal  raw  materials  purchased,  and  quantities  in  pounds  per  year  (estimated). 

B.  Kinds  of  cotton  and  wool  purchased  and  length  of  staple  used. 

C.  Numbers  or  counts  of  yarns  spun  and  purchased. 

D.  Average  number  of  days  required  for  delivery  of  raw  materials. 

E.  Materials  in  process  in  pounds  and  dollars  (estimated). 

F.  Material  needed  to  keep  mill  threaded  up,  in  pounds  (estimated). 

G.  Material  turnover. 

1.  Per  year. 

2.  From  receiving  to  shipping. 
H.   Loss  on  cotton  or  wool. 

1.  Measured. 

2.  Accounted  for. 

I.     Total  stock  on  hand  of  cotton  or  wool  in  pounds  by  months,  1918,  1919,  1920 

J.     Variety  of  styles  manufactured  at  one  time. 

K.   Number  of  styles  per  year. 

L.    Number  of  styles  added  per  year. 

M.  Number  of  styles  dropped  per  year. 

Labor  and  Mill  activities. 

A.  Average  number  of  overseers,  second  and  third  hands,  and  number  of  employees 

by  departments. 

B.  1.  Total  number  of  cards 

spindles 
looms 
2 .  Number  tended  per  operator — cards 

spindles 

looms 

C.  Source  of  power. 

Manufactured  Water 

Purchased  Steam 

D.  Square  feet  of  floor  space. 

APPENDIX  II 

Individual  Field  Report  Evaluations.     (13  charts). 


248 


WASTE  IN  INDUSTRY 


FIELD     REPORT  EVALUATION 

OF 
THE    FEDERATED   AMERICAN    ENGINE  ERING  SOC    ETIES 

INDUSTRY  Textile               PLANT  NO.  /                           EST.  BY  M.  F.  8.  0,  Co.                            DATE  Z/n/Zl 

>.   ®  + 

J)  +  ®  -©  Excellent  =  0°l<,Wast. 
Good        =20°/o  M 

'•      Poor  =  60°/o  Waste                a-i-b  +  c=d=  |00°lo 
Bad   -  80°/0    »,                    e+f  +  g=h-  °/0  Waste 

CAUSES 

Guide 

RESPON3I  81   LIT1ES 

TOTAI.WASTC 

for 
Field 
nvesti- 
gator 

MANAGEMENT 

LABOR 

OUTSIDE    CONTACTS 

Assigned  Points 
Poinh    Wast* 

~T~ 

Est 

VJa 

Tl 

°lo 

t« 

Points 
Waste 

S 

Est.°lo 
Waste 

Points 
Waste 

Points 

Est.°lo 

Points 
Waste 

5 

14 

§ 

K  1 

K2 

30 

50 

1.5 

3.0 

1.5 

KJ 

c^ 

K4  • 

I.I 

KS 

I.S 

0.5 

60 

0.3 

2.0 

0.3 

K6  [ 

K7    h 

S   "w 

K5     1 

4.0 

40 

16 

2.5 

40 

1.0 

1.5 

40 

0.6 

80 

32 

z   &  ff 

o    o*  ^ 

KIO 

0.5 

10 

O.I 

0.2 

20 

O.I 

1.3 

to 

0.3 

2.0 

0-5 

—   ^    3) 

Kl'     / 

>-    T-J  -*- 

KI2 

<    £  '-S 

isl      "^      *" 

KI4 

10 

40 

0.4 

1.0 

40 

0.4 

0.2 

50 

O.I 

2.2 

0.9 

KI5 

z    if 

KIC 

0.3 

100 

0.3 

0.2 

100 

0.2 

0.5 

OS 

<  *p  *»- 

KIT 

20 

1.0 

1.0 

4.0 

07      *°    <u 

me 

KI9 

0.3 

30 

O.I 

0.3 

O.I 

K20 

1.0 

10 

O.I 

1.0 

10 

O.I 

2.0 

0.2 

°       3     * 

K2I 

0.5 

40 

0.2 

0.5 

40 

02 

1.0 

0.4 

£    c 

•5  ^ 

£    < 

TOTAL 

14.1 

4.3 

6.4 

2.0 

4.6 

1.3 

0  25.0 

e     - 

Tl 

3.0 

20 

0. 

3.0 

0.6 

H)~ 

rt 

30 

40 

1. 

3.0 

1.2 

fc    'C 

T3 

3.0 

90 

2. 

30 

2.7 

*J    +. 

T4 

3.0 

60 

3.0 

1.8 

j      C  E 

TS 

3.0 

50 

3-0 

1.5 

0)"° 

T4     X 

'00 

•S   N 

TAP, 

LY  TC 

THE  / 

fXTIL 

<•  INDU 

sritY 

'P   ° 

n 

5.0 

10 

25.0 

10 

25 

30-0 

3.0 

w  "c 

•~  K 

C   •*r- 

«*  -o 

-g  e 

ss 

TOTAL 

20.0 

8.3 

25.0 

25 

b  •«  •: 

f   10.8 

Ul 

20 

40 

0.8 

2.0 

08 

.1 

uiX 



- 

— 



= 

U4 

2.0 

40 

0.8 

2.0 

0.8 

U^ 

l>6 

0.5 

90 

0.4 

05 

0.4 

1  I  A  T  1  0  N 

ca\  Knowledge  and  Or 
Accounting  Factors 

U1 

3.0 

30 

2.0 

30 

0.6 

5.0 

1.5 

UB^ 

0.5 

50 

0.5 

20 

O.I 

1.0 

40 

0.4 

2.0 

08 

U9 

0.5 

40 

0.5 

0.2 

UIO 

04 

50 

0.4 

50 

0.2 

0.2 

50 

O.I 

1.0 

0.5 

Ull 

1.0 

20 

1-5 

40 

0.6 

2.5 

uu 

1.0 

30 

1.0 

30 

0.3 

2.0 

0.6 

ulj 

0.5 

20 

0.5 

20 

01 

0.5 

20 

0.1 

1.5 

0.3 

UI4 

0.5 

20 

0.5 

O.I 

uis 

04 

O.I 

80 

O.I 

05 

O.I 

U  T  1  L 
Effectiveness  of  Techn 
Direction,  Control  and 

un 

1.0 

10 

O.I 

1.0 

20 

0.2 

2.0 

03 

UV 

1.0 

1.0 

TOTAL 

17.3 

5.0 

5.4 

1.7 

7.3 

26 

C    300 

g|  9.3 

GRAND  TOTAL 

51.4 

17.6 

11.8 

3.7 

368 

6.4 

d   iOD.O 

hj  277 

THE  TEXTILE  INDUSTRY 


249 


FIELD    REPORT   EVALUATION 

AMERICAN     ENGINEERING    COUNCL 
OF 
THE     FEDERATED    AMERICAN     ENGINEERING    SOC  ETIES 

INDUSTRY  Textile               PLANT  HO.  ?                             EST.  BY  V.F.B.RCo.                            DATE  Z/n/21 

>   ©  +  ®  +  ®-@  Excellent-  0%Waste      poor  -60%Waste                    a  -t-  b-t-  c-  d-100% 

3  @  +  ®  +  ®-@  M?    :5S%  "    Bod  -80%  "           e+f+^  h=ov0 

CAUSES 

Guide 
Questions 

Field 
nvesti- 
gator 

R  ESPONSI  B  I  L.ITI  ES 

TOTAL  WASTE 

MA  NAGEMENT 

LABOR 

Pomh 
Waste 

tesigned 
Points 

Est.% 
Waste 

oints 
Waste 

ssigned 

Est.% 
Waste 

'oints 
Waste 

ssigned 
oints 

Est.  % 
Waste 

Points 
Waste 

Points 

7 

Kl 

M. 

3.0 

60 

1.8 

3-0 

1.8 

c 

a  o- 
£  '•§ 

KA 

=  ° 

K6 

• 





s| 

K7   L 

&    IX 

K8 

4.0 

80 

3.Z 

Z.5 

50 

1.3 

1.5 

to 

0-9 

80 

5.4 

Z.    fc    "c 

K9  ) 

2{i 

Kll 









KI2 

<  2  ••§ 

KI3 

0  R  G  A  N  1  Z 

Mechanism  of  Industry  asto  Type.Het* 
Assignment  and  Discharge  of  Respon 

KI4 

1.0 

40 

0.4 

;  0 

40 

0.4 

O.Z 

50 

O.I 

2.Z 

0-9 

K15 

16 

0.3 

100 

03 

o.z 

100 

0-2 

0.5 

05 

17 

20 

10 

0.4 

1.0 

ZO 

o.z 

1.0 

ZO 

O.Z 

4.0 

0.8 

18 

19 

0.3 

70 

O.Z 

0-3 

w 

20 

1.0 

70 

0.7 

1.0 

70 

0.7 

Z.O 

1.4 

(£ 

0.5 

v,0 

0.3 

0.5 

60 

0.3 

1.0 

0.6 

TOTAL 

» 

8.9 

6.4 

3-Z 

4.5 

z.o 

<j]250 

e|,4. 

w     m 

T 

3.0 

40 

I.I 

3.0 

n 

3.0 

20 

0.6 

3.0 

0-6 

-.11 

TJ 

3-0 

40 

1.2 

3.0 

.Z 

T4 

30 

to 

1.8 

3.0 

•  8 

T5 
T6    X 

30 

0.9 

30 

°'9 

TEC  H  N  1  ( 

Available  Engineerir 
asto  Product,  Plant  a 

T7 

(,0 

3.0 

Z50 

^Ob_ 

TOTAL 

20.0 

8.1 

Z5.0 

17.5 

b  45.0 

f    26.  Z 

1 

and  Organization, 
tors. 

Ul 

2.  ) 

to 

i.l 

Z.O 

1.2 

U£ 

.0 

10 

O.Z 

1.0 

70 

0.7 

2,0 

0.9 

U3\ 

U         1 

2-0 

10 

0.4 

2.0 

0.4 

U           ) 

u 

0.5 

40 

0.2 

0.5 

0.2 

U 

10 

0.3 

20 

50 

0-1 

5.0 

0.4- 

u    r- 

60 

03 

0-5 

40 

0.2" 

1.0 

40 

0.4 

2.0 

0.3 

U9 

to 

O.J 

0-5 

0. 

UTI  LIZ  ATI  01 

fectiveness  of  Technical  Knowledge 
rection,  Control  and  Accounting  Fac 

40 

0.4 

TT~ 

40 

M 

2-5 

—  f:  — 

I  IZ 

ZO 

OZ 

1.0 

20 

0.2 

2.0 

0 

I    3 

20 

0.5 

70 

O.I 

0.5 

to 

O.I 

1.5 

0. 

UI4 

10 

O.I 

0.5 

0. 

u  s 

50 

0.2 

O.I 

80 

01 

0.5 

0  3 

60 

1.2 

2.0 

60 

2 

1.0 

0.4 

5.0 

2.8 

UI8 

20 

0.2 



1.0 

0.2 

UJ    O 

TOTAL 

173 

5.7 

5.4 

Z.3 

-  -> 

2.5 

C|30.0 

e,|,o.5 

GRAND  TOTAL 

5  .4 

23  3 

11.8 

5.5 

36.8 

22.0 

d|,00, 

^|50.8 

250 


WASTE  IN  INDUSTRY 


FIELD    REPORT  EVALUATION 

COMMITT 
THE    FE 

EE  ON   ELIMINATION   OF  WASTE 

IN    INDUSTRY 

L 

,  SOCIETIES 

OF 
DERATED    AMERICAN    ENGINEERIN 

INDUSTRY  Texftle                PLANT  NO.    3                           EST.  BV  M.F.B.e,  Co.                               DATE  3/ifti 

,    ©  + 

*    ®^ 

®+<i 

Guide 

)  -  ®  Excellent  =0%  Waste       Poor  =  600loWaste                 a  -H  b  +  c  -d  =  I00°lo 
)  -®  fS?           40°lo   "           Bad-    =  80%     ,,                      e  +  f  +  g-h-  °lo  Waste- 

CAUSES 

Quest  on 
for 
Field 
Investi- 

Assigned 
Points 

Est.°|0 
Waste     . 

Points 
Waste 

s 

LABOR 

Est.°lo 
Waste 

Waste 

tr 

,10E    COMTAC 

Est.lo 
Waste 

Po'mts 
Waste 

AS5i9ned 
Points 

Waste 

fi  .fi- 
ll 

K 

3.0 

6D 

1.8 

3.0 

1.8 

K 

K 

u 

1.5 

100 

1.5 

0.5 

«0 

0.3 

?.o 

1.8 

K 

K7     , 

*ll 
?§! 

<ls 

9  J 







—  9— 

—  



_0.9_ 

1  ' 

—  — 

10 

O.S 

40 

(,  ; 

0.2 

4O 

O.I 

I.J 

40 

?.o 

0.8 

,, 

12 

13 

0  R  G  A  N  1  t 

sm  of  Industry  as  toType,  Mel 
nentand  Discharge  of  Respons 

(  14 

l.O 

40 

0.4 

1.0 

40 

0.4 

0-2 

50 

O.I 

c  -2 

0.9 

15 

& 

0.3 

100 

0.3 

0.2 

100 

at 

O.S 

OS 

KIT 

z.o 

ro 

0.4 

1.0 

20 

0.2 

1.0 

to 

o.z 

4.0 

0.8 

KI9 

0.3 

01 

0.3 

O.I 

K?0 

1.0 

20 

0.2 

1.0 

20 

0.2 

7.0 

0.4 

K?l 

0.5 

80 

0.4 

OJ 

80 

0.4 

l.O 

0-8 

If 

r< 

TOTAL 

It-.l 

8.5 

6.4 

J.8 

4.5 

to 

a  Z5.0 

e  ,>,.3 

TECHNICAL 

Available  Engineering  Knowledge 
as  to  Product,  Plant  and  Materials 

3.0 

40 

1.2 

3.0 

a 

T 

3  0 

100 

3.0 

3.0 

3.0 

3.0 

40 

2    . 

3.0 

12 

}.0 

U 

3.0 

.8 

30 

50 

1.5 

3.0 

1.5 

T6     X 

£30 

£5      H 

T   AP 

PL  Y   7 

J     TW 

TEX 

T  1  L  £ 

t  N  D  U 

STR  Y 

T1 

5.0 

10 

3.5 

ISO 

10 

ITS 

30.0 

JI.O 

TOTAL 

?0.0 

12.  1 

25  .0 

'.  -  : 

b|45.0 

f   .  ;  - 

1  0  N 

edge  Qnd  Organ'aation. 
g  Factors 

Ul 

?.o 

60 

1.6 

2.0 

& 

U2 

1  0 

40 

04 

1.0 

10 

0.1 

?0 

1.1 

U3X 

'4 

?.o 

60 

u 

2.0 

12 

s 

O.S 

40 

o.t 

O.S 

02 

p 

3.0 

10 

0.3 

?0 

SO 

l.O 

5.0 

1.3 

U8H- 

05 

100 

0.5 

0.5 

60 

0.1 

l.O 

80 

0.8 

?0 

it 

1)9 

0-5 

60 

O.S 

03 

uio 

0.4 

40 

02 

0.4 

50 

0.2 

o  -i 

50 

0.1 

l.O 

0.5 

Ull 

10 

EO 

_^_ 

1.5 

40 

0.6 

M 

0.8 

U  T  1  L  1  Z  A  T 

Effectiveness  of  Technical  Know 
Direction,  Control  and  Account'ir 

O.S 

20 

O.I 

0.5 

O.I 

0-5 

20 

O.I 

I.S 

0.3 

Ul4 

0.5 

40 

0.2 

O.S 

0.2 

U  5 

04 

ZO 

O.I 

O.I 

80 

O.I 

O.S 

0.2 

20 

40 

08 

20 

40 

0.8 

l.O 

04 

5.0 

U  T 

1.0 

40 

0.4 

1.0 

40 

0-4 

e.o 

0.8 

UB 

1.0 

80 

08 

l.O 

0.8 

TOTAL 

n.i 

1.5 

5.4 

to 

1.3 

3.8 

C    v~  '" 

9    13.3 

GRAND  TOTAL 

5i.4 

J8.2 

11.8 

4-8 

36.8 

25.3 

d  100 

h   56.3 

THE  TEXTILE  INDUSTRY 


251 


FIELD     REPORT  EVACUATION 

AMERICAN     ENGINEERING    COUNC   L 
OF 
THE    FEDERATED   AMERICAN   ENGINEERING    SOCIETIES 

INDUSTRY  Textile                PLANT  NO.  4                           EST.BY  M.F.B.zCo.                               DATE?/?*/?/ 

£    ®+®+®-@  Excellent  -^W^         Poor  -  60%  Waste                   a  +  b+  C  -d  -  I00°lo 

CAUSES 

Guide 
Questions 
for 
Field 
nv/esti- 
gator 

RESPONSIBIHT 

ES 

TOTALWASTE 

Points 
Waste 

issignec 
Points 

tst.°lo 
Waste 

Points 
Waste 

Assigns 
Pomts 

Est.°lb 
Waste 

Points 
Waste 

Points 

Est.°|o 
Waste 

Points 
Waste 

Points 

5 

9 

10 

_- 

Kl 

^ 

3.0 

SO 

1.5 

3.0 

1.5 

9 

Kl 

&.    C- 

M 

"°   ~& 

K5 

1.5 

100 

1.5 

0.5 

60 

0.3 

2.0 

.8 

a    £ 

K6 

•£  'o 

Kl 

z    ?    K 

^- 

1.5 

_j^_ 

_U.b_ 

8.0 

r>    o"   c 

KIO 

OS 

20 

O.I 

0.2 

20 

O.I 

1.3 

40 

0^ 

2.0 

0.7 

^    31 

j_  -g  .t: 

<  J  -° 

KI3 

a»    £ 

KK 

1-0 

40 

0  4 

1.0 

40 

0.4 

0.2 

50 

0.1 

2.2 

0.9 

K  IS 

z  %  £ 

IS 

a3 

100 

0.3 

02 

100 

0.2 

0.5 

O.S 

IJ 

20 

0.2 

1.0 

20 

0.2 

1.0 

zo 

0.2 

4.0 

0.6 

18 

19 

0.3 

100 

0.1 

0.3 

O.J 

(E     3)  ^ 

20 

|   Q 

40 

04 

1-0 

20 

0.2 

f.O 

0.6 

O    ^    ^ 

-, 

0-5 

40 

0  2. 

0  5 

40 

O.Z 

1.0 

04 

"c  ^ 

-   1 

E   c 

c    c 

£   •? 

r  < 

TOTAL 

4. 

5.1 

6.4 

1.8 

4-5 

0  2W 

e  92 

T| 

3.0 

20 

0.6 

3.0 

0.6 

fj£ 

T2 

3.0 

90 

2.1 

3.0 

M 

•- 

T3 

3.0 

9C 

?.7 

3.0 

J.I 

1  *" 

T4 

3.0 

60 

1.8 

3.0 

1.8 

J  J|  z: 

T5 

3.0 

20 

0.6 

3.0 

0-6 

T1 

5.0 

60 

3.0 

J5.0 

TO 

30.0 

20.5 

—  '     w   P 

^  •-  5: 

1  JV 

i—    ~°   ° 

TOTAL 

JO-0 

11.4 

25.0 

bJ45.0 

f   28.9 

til 

2.0 

100 

!^_ 

2.0 

!.0 

.1 

~U3T|  





' 

1  

o 

UA 

?.Q 

1.6 

s.o 

I.S 

•E 

°5 

i 

U6 

0.5 

40 

0.2 

o.s 

0.2 

0 

11 

U7 

3-0 

90 

J.O 

SO 

.0 

5-0 

3  ^ 

us)1 

BO 

0.4 

0.5 

60 

0.3 

1.0 

40 

0  4 

s.o 

'•1 

UIO 

04 

~so~ 

as 

0.4 

SO 

0.2 

0.2 

so 

0.1 

1.0 

o.s 

Ull 

1.0 

40 

0.4 

IS 

40 

?  5 

1.0 

UI2 

i.O 

40 

0-4 

1.0 

40 

0.4 

?  0 

0.8 

UU 

as 

40 

0.2 

40 

0.2 

OS 

40 

0.2 

1.5 

0.6 

M 

to 

O.I 

O.S 

O.I 

U  T  1  L  1 

fectwenesj  of  Technic 
rection,  Control  and  Ac 

US 

?o 

40 

0-8 

To~ 

40 

0.8 

1.0 

40 

OA 

s.o 

2.0 

ua 

1.0 

40 

04 

1.0 

40 

0.4 

2.0 

0.8 

1.0 

60 

0.6 

1.0 

0.6 

nJ    0 

TOTAL 

n.3 

5.4 

M 

T.3 

3.5 

C   30.0 

g|l6.9 

GRAND  TOTAL 

51-4 

28.2 

IIS 

4-1 

36.8 

2J.1 

d  ioo 

njss.o 

252 


WASTE  IN  INDUSTRY 


FIELD    REPORT    EVALUATION 

COMMITTEE    ON     ELIMINATION    OF    WASTE    IN     INDUSTRY 
AMERICAN    ENGINEERING    COUNCIL 
OF 
THE     FEDERATED   AMERICAN     ENGINEERING    SOCIETIES 

INDUSTRY  Textile                   PLANT  NO.  5                                 EST.  BY  M.F.  fl  «C<7.                                   DATE  3/3/21 

>•   0  +  ©  +  ®  "  @  Excellent  -  0%  Waste     Poor   =60%  Waste                      a  +  b  -t-  c  -  d  -  100% 
S    ®+<8>  +  @-®£ir         -40%"         Bad    -«0%     "                         e+f.g.h,   %WaSte 

CAUSES 

Guide 
Questions 
for 
Field 
Investi- 
gator 

R  E 

SPONSIBILITIE 

S 

TOTAL  WASTE 

lssi9ned 
Points 

Est.°/o 
Waste 

Points 

Y;aste 

Assigned 
Points 

Est.% 
Waste 

Points 
Waste 

ssigned 
Points 

Est.  °/0 
Waste 

Points 
Waste 

toigned 
Points 

Points 
Wast« 

1 

t 

3 

4 

5 

<a 

7 

6 

d 

IO 

II 

IE 

13 

14 

ATION 

thods(PaperWorkJand  Personnel, 
isibility  and  Relationship 

KJ 

KE 

3.0 

80 

2.4 

?  4 

10 

K4, 

K5 

1-5 

100 

1.5 

O.S 

60 

0.1 

z.o 

1.8 

K6 

K7 

K8 

40 

80 

3.0 

2.5 

50 

1.3 

1.5 

60 

0.9 

8.0 

S.Z 

KIO 

O.S 

to 

O.I 

0.2 

to 

O.I 

1.5 

40 

O.S 

?.o 

0.1 

Kll 

KI2 

KIJ 

OR  G  A  N  IZ 

Mechanism  of  Industry  as  to  Type,  Me 
Assignment  and  Discharge  of  Respo 

KI6 

0.1 

100 

0.1 

O.I 

100 

0.2 

y 

0.5 

KI7 

to 

0.8 

1.0 

50 

c.s 

t.O 

60 

0.6 

40 

1.9 

KI8 

KI9 

0  > 

40 

0.1 

0.3 

O.I 

KZO 

1.0 

50 

0.5 

1.0 

50 

O.S 

?.o 

1  o 

K2I 

0.5 

80 

0.4 

0.5 

40 

o.z 

0.6 

TOTAL 

W.I 

9-5 

6.4 

3.Z 

4-  5 

;•  i 

n|aB.O 

e|.s.. 

Tl 

•  " 

40 

1.2 

5.0 

a 

01  a 

TZ 

3.0 

TO 

?.i 

3.0 

21 

11 

m 

T5 

5.0 

10 

J.I 

J.O 

2.1 

T4 

3.0 

09 

1.8 

3.0 

1.8 

T5 
T6      X 

30 

40 

IJ 

3.0 

I.J 

-Z  Z 

z  ?>  i 

T7 

58 

70 

55 

zso 

70 

TECH 

Available  Engir 
as  to  Product,  PI 

TOTAL 

zo.o 

ir.9 

J5.0 

n.s 

b|45.0 

f|j9-4 

Ul 

J.O 

90 

LI 

J.O 

1.8 

ION 

sledge  and  Organization 
\g  Factors 

U3>i 

_LP_ 

?9 

_LP_ 



_OJ  1 

U4 

?.o 

70 

1.4 

?.o 

1.4 

U5 

Ufc 

_OJ_ 

80 

0.4 

O.S 

0.4 

U7 

3.0 

80 

Z* 

to 

50 

1.0 

5.0 

3  4. 

U8)1- 

0.5 

80 

0.4 

0.5 

eo 

0.3 

1.0 

80 

o.e 

1.5 

U9 

60 

0.3 

O.S 

UJP 

0.4 

50 

OZ 

0.4 

10 

Oi 

o.z 

£0 

O.I 

1.0 

0.8 

Ull 

1.0 

zo 

p_z 

1.5 

40 

06 

?.5 

UIZ 

10 

B 

05 

1.0 

40 

0.4 

J.O 

0  9 

TILIZAT 

rechnical  Knov 
and  Account* 

UI5 

O.S 

(0 

0.3 

05 

80 

0.4 

0.5 

60 

0.3 

1.5 

I  0 

UI4 

0.5 

60 

0.5 

0.5 

0.3 

UIS 

0.4 

40 

O.I 

O.I 

80 

O.I 

O.S 

0.3 

UI6 

3.0 

60 

1.2 

?.o 

(0 

I.Z 

10 

40 

0.4 

5-° 

?.! 

UI8 

1.0 

100 

1.0 

1.0 

1.0 

U 

Effectiveness  of 
Direction,Corvtro 

TOTAL 

n.3 

i'  i 

5.4 

J-9 

7.3 

3.8 

C   3C  3 

gki 

GRAND  TOTAL 

51.4 

32.8 

11.6 

£.1 

36.8 

25.7 

d  ico 

h|«.6 

THE  TEXTILE  INDUSTRY 


253 


FIELD    REPORT    EVALUATION 

AMERICAN     ENGINEERING    COUNCIL 
OF 
THE     FEDERATED  AMERICAN     ENGINEER-ING    SOCIETIES 

INDUSTRYrexft/e                  PLANT  NO.  6                              E5T.  BY  M.  F.  B.  *  Co                               DATE  3/7/Z/ 

>-    0+©  +  ®=®  Excellent  -0%  Waste      Poor  -60%Waste                  a  +  b  -c  C  =d  =  100% 
S    ®+®+@=®  Fair*         3ol  r,        Bad=8°%    "                     «»f  *f-h-    %WaSte 

CAUSES 

Guide 
Questions 
for 
Field 
nvesti- 
gator 

I                                        R.ESPONS  1  B  1  LI  Tl  ES 

TOTAL  WASTE 

MANAGEMENT 

OUTSIDE  CONTACTS 

Points 
Waste 

feigned 
Points 

E5t.% 

Waste 

Vaste 

Assignd      Est.%       [Points 
Points  1      Waste      Waste 

feigned 
Points 

Est.%       iPoints 
Waste        Waste 

Points 

Kl   ' 

K2 

3-0 

60 

1.8 

3.0 

18 

a. 

K3 

Jjl 

K4  / 

%  £ 

K5 

.5 

100 

I.S 

0.5 

60 

0.3 

2.0 

1.8 

II 

K6 

^•"o 

K7 

5  cz 

K8 

4.0 

40 

1.6 

2.5 

40 

1.0 

1.5 

40 

06 

8.0 

3'2 

Z  «  "? 

K9 

0  l§ 

K10 

0.5 

20 

O.I 

0.2 

20 

O.I 

1-3 

40 

0.5 

2.0 

0.1 

a-  -? 

Kll 

KI2 

.£••§ 

KI3 

t   g 

KI4- 

.0 

40 

0.4 

1.0 

40 

0.4 

o.z 

50 

O.I 

?2 

0.9 

rf-fr 

KIS 

ir06 

K  16 

0.3 

100 

.0.3 

0.2 

100 

0.2 

OS 

0.5 

?•» 

KIT! 

?.o 

?0 

0.4 

1-0 

40 

0  4 

10 

20 

0.2 

4.0 

1-0 

£  S, 

Kl8  J 

K  19 

O.i 

60 

0.2 

O.J 

0-2 

-t-5 

K  20 

1.0 

40 

04 

1.0 

40 

0.4 

2.0 

0.8 

1-1 

K2I 

0.5 

60 

0.3 

O.S 

60 

0.3 

1.0 

06 

1? 

£  § 

c    | 

•5  'ST 

s  <c 

TOTAL 

14.1 

1.0 

6.4 

?8 

4.5 

U 

o|25.0 

e  11.5 

4J     « 

T  1 

:  .0 

ZO 

0.6 

3.0 

0.6 

T2 

30 

100 

3.0 

30 

3.0 

1     i 

T3 

3.0 

90 

S.I 

3.0 

2.1 

_i   2    ° 

T4 

3.0 

60 

1.8 

3.0 

1.8 

<-f 

T5 

3.0 

20 

0.6 

30 

0.6 

U.c    fe 

T7 

5.0 

10 

0.5 

25.0 

|0 

2.5 

30 

3.0 

r  g  g 

r-&s 

<•>£•§ 

ui  „-§ 

•~-§S 
•£  S 

TOTAL 

20.0 

9-2 

25.0 

2.S 

b  45.0 

f|.I.T 

UTILIZATION 

Effectiveness  of  Technical  Knowledge  and  Organization, 
Direction,  Control  and  Accounting  Factors 

U  1 

?.o 

100 

2.0 

?.o 

U2 

.0 

10 

0  1 

1-0 

10 

0.1 

2.0 

0.2 

usy- 

U4 

?.o 

40 

0.3 

2.0 

0.8 

U5 

Ufe 

0.5 

60 

0.5 

05 

0-3 

U7 

30 

80 

?4 

2.0 

60 

1.2 

5-0 

3.6 

U«H 

OS 

10 

O.I 

0.5 

10 

O.I 

l.O 

zo 

0.2 

2.0 

0.4 

U9 

.5 

100 

O.S 

UIO 

A 

50 

0.2 

0.4 

100 

0.4 

0.2 

50 

O.I 

1.0 

0.1 

U  II 

.0 

10 

O.I 

1-5 

20 

0.3 

?.s 

04 

UIZ 

.0 

60 

0.6 

1.0 

40 

0.4 

20 

1-0 

U  13 

S 

20 

0  1 

0.5 

20 

O.I 

0.5 

20 

01 

1.5 

0.3 

UI4 

:S 

000 

00 

0.5 

00 

UI5 

4 

20 

O.I 

O.I 

80 

O.I 

O.S 

0.2 

UI6 

o 

40 

05 

2.0 

40 

08 

1.0 

20 

0.2 

5.0 

1.8 

U  17 

o. 

20 

Oj 

1.0 

30 

0.3 

?.o 

0.5 

U  18 

0 

40 

04. 

1.0 

0.4 

TOTAL 

1.3 

8.T 

5.4 

fcl 

1.3 

£.3 

c|30.0 

E 

GRAND  TOTAL 

51.4 

24.9       11.8 

4.3 

J6.8 

6.5 

ct[ioo 

h]36.3 

254 


IN  INDUSTRY 


FIELD    R  EPORT  EVALUATION 

AMER  CAN     ENGINEER    N6     COUNCIL 
OF 

INDUSTRY  Textile                   PLANT  NO.   7                              EST.  BY  M.F.  8.H  Co.                                   DATE  3//0/2/ 

>-    ©-1-©*®-®  Excellent  =0%V(ast« 
J    @      ^   .  ^      ^  5°.°d         •%    » 

Poor   -  SOofeWaste                   a  +b  +C  =d  =IOO°/o 
Bad    =80%     »                       e  +  f  +  g-h  -  °loWaste 

CAUSES 

Guide 
Question 
for 
Field 
Investi- 
gator 

TOTAL  WASTE 

L   ABOR 

OUTSIDE    CONTACTS 

Points 
Waste 

Assigns! 
Points 

Est°lo 
Waste 

Points 
Waste 

Ssr 

Esi°lo 
Waste 

Points 
Vtaste 

^signed 
Points 

Est.=1o 

V<aste 

"omts 
Waste 

isagned 
Points 

1 

3 

G 

10 

II 

Tl  0  N 

ds(PaperWork)and  Personnel, 
ityand  Relationship 

XI 

K2 

3.0 

90 

?.T 

3.0 

7.7 

m 

K4 

KB 

1.5 

100 

1.5 

0.5 

60 

0.3 

?.o 

.8 

K6 

8 

4.0 

90 

3.6 

7.5 

60 

1.5 

1.5 

60 

0.9 

8.0 

6.0 

9 

O.S 

20 

O.I 

O.t 

10 

O.I 

1.3 

40 

0-5 

?.o 

0.7 

I      ) 

1? 

0  R  G  A  N  1  7.  A 

stryastoType,Methc 
chargaof  Responsibi 

14 

l.O 

40 

0.4 

l.O 

40 

0.4 

O.I 

50 

O.I 

1.1 

0.9 

IS 

IS 

0.3 

100 

0.3 

o.z 

100 

O.J 

O.S 

0.5 

n 

2.0 

50 

1.0 

1.0 

SO 

0-5 

l.O 

?0 

0^ 

4.0 

•j 

IS 

(19 

0.3 

100 

0.3 

0-3 

0.3 

?0 

LO 

10 

0.7 

l.O 

70 

0.1 

?0 

.4 

%-a 

_O5  — 

_p_s_ 

_O8  — 

Mechanism  of  1 
Assignmentan 

TOTAL 

14.  1 

11.0 

6.4- 

3.8 

4-5 

to 

a  zs.o 

e  :',.& 

n 

0.6 

J.O 

O.S 

"2 

3.0 

100 

3.0 

T5 

3  0 

90 

2.7 

3.0 

?.7 

if 

T4 

3.0 

80 

1.8 

3.0 

.8 

T5 

30 

40 

LJ 

3.0 

LJ 

TECHNICS 

Available  Engineer*™ 
astt)  Product,  Plant  an 

T7 

5.0 

80 

4O 

Z5.0 

80 

EO.O 

30.0 

«J3 

TOTAL 

20.0 

IJ.} 

?5.0 

zo.o 

b  -:,: 

f|33.3 

UTILIZATION 

Effectiveness  of  TechnicaLKnowledge  and  Organisation 
Direction,  Control  and  Accounting  Factors 

u 

?.o 

100 

:_2  | 

t-O 

7.0 

i 

1.0 

20 

O.I 

l.O 

80 

0.8 

4 

?.o 

1.8 

2.0 

18 

I 

i 

O.S* 

80 

0.1 

OS 

04 

1 

30 

100 

.3.0 

?.o 

90 

1.8 

_    0 

4.8 

sY- 

O.S 

0.4 

0.5 

60 

O.J 

60 

0.8 

.0 

OS 

100 

0:5 

os 

10 

0.4 

100 

0.4 

0.4 

100 

M 

0.2 

50 

O.I 

l.O 

t) 

1.0 

60 

•0.6 

1.5 

60 

0.9 

2.5 

n 

1.0 

60 

0.6 

1.0 

50 

0.5 

?0 

u 

0.5 

60 

03 

O.S 

80 

0.4 

OS 

80 

04 

1.5 

14 

0.5 

60 

0.3 

O.S 

IS 

04 

20 

0  , 

O.I 

80 

O.I 

05 

16 

2.0 

60 

12 

?.o 

80 

1-6 

l.O 

60 

0-6 

50 

n 

l.O 

«7 

0.4 

} 

40 

0.4 

?.o 

18 

l.O 

60 

0.6 

l.O 

0.6 

TOTAL 

113 

17-8 

5.4 

3.6 

1.1 

5.S 

c  :-'  - 

9    Z.9 

GRAND  TOTAL 

51.4 

yi.i 

11.8 

1.4 

5«8 

tl.S 

d  100 

h   T2.0 

THE  TEXTILE  INDUSTRY 


255 


FIELD    R  E  PORT   EVALUATION 

AMER 
THE    FEOERAT 

I 
,   SOC   ETIES 

OF 
ED   AMERICAN    ENGINEERIN 

INDUSTRY  Textile                  PLANT  MO.  8                            EST.  BY  M  F.  8.  a  Co.                                DATE  J/ZJ/" 

>-    (D+©  +  ®-®  Excellent  =  0°|o  Waste        Poor  ,  60°|0  Waste                   a  +  b  *C  -d  -I00°lo 
*    ®  +  ®^®-®Fa°°rd        S:             Bod    -  M'loWaste                  e  ,f  +9-h  -  "loWaste 

<n 
u 

Qu  de 
Question 
for 
Feld 
rwesti- 
gator 

R 

iSPOHSIBILITIi 

S 

TOTALWASTE 

^signed 

PC  nts 

Est.°lo 
Waste 

Points 
Waste 

Assigned 
Points 

est.°io 

Waste 

Points 
Waste 

fissioned 
Points 

Est.olo 
NVaste 

Points 
Waste 

«igr*d 
Po'irrts 

VJas,te 

? 

3    .. 

4 

5 

6 

] 

8 

9 

10 

U 

U 

14 

•£ 

K 

£ 

K2 

3.0 

10 

0.3 

3-0 

0.3 

S 

K3 

&  ft. 

K4 

ll 

K5 

IS 

70 

0.3 

0.5 

60 

0.3 

20 

0.6 

K6 

^  V 

K7 

K8 

4.Q 

10 

04 

7.5 

10 

O.Z 

1.5 

20 

0.3 

8.0 

0.9 

z  s% 

K9  . 

o  §-1 

KIO 

0.5 

10 

O.I 

02 

000 

0.0 

U 

10 

O.I 

2.0 

O.Z 

K 

1—    T3    .*tT 

KIZ 

<  2  3 

N    ^    c 

K14 

1.0 

10 

O.I 

1.0 

10 

O.I 

0.2 

2O 

0.4- 

2.2 

O.S 

»     r  2. 

K  5 

z   || 

KI6 

0.3 

50 

0.2. 

0.2 

50 

O.I 

0.5 

O.J 

<     £   4- 

KIT 

?.o 

000 

o-o 

10 

10 

01 

1.0 

20 

0.2 

4.0 

0.3 

(5    <"   « 

KI8 

K     3>  - 

KI9 

0.3 

000 

0.0 

0.3 

0.0 

^  £ 

KtO 

Lfl 

000 

0.0 

1.0 

10 

O.I 

2.0 

O.I 

Ktl 

0.5 

000 

0.0 

0.5 

20 

O.I 

1.0 

0.1 

P  "E 

1   | 

ft 

u 

TOTAL 

14. 

1.4 

64 

0.7 

4-5 

1.1 

a  25.  o 

e  3.4. 

Tl 

3.0 

000 

0.0 

3.0 

0-0 

&i 

T2 

000 

0.0 

3.0 

00 

IT 

TJ 

3.0 

000 

0.0 

1.0 

0.0 

If 

T4 

3.0 

?0 

3.0 

O.G 

<^ 

T5 

30 

JO 

0.6 

3.0 

0.6 

o  -S  fe 

n 

5.0 

20 

1.0 

25.0 

so 

15.0 

30.0 

16.0 

~     |    § 

^  S,§ 

If 

3S 

TOTAL 

20.0 

t.1 

15.0 

15.0 

BE 

f  n.2 

c 

I 

1.0 

to 

0.2 

i-O 

60 

O.S 

0.8 

3>1 

o 

4 

2.0 

10 

02 

?.o 

0.2 

c 

< 

1 

6 

0.5 

10 

O.I 

0.5 

O.I 

6 

1 

3.0 

30 

0.9 

i  0 

GO 

1.2 

5.0 

2.1 

»1{ 

os>:o 

HI  r 

Ijj 

E 

0-5 

40 

O.I 

0.5 

zo 

O.I 

1  o 

40 

04 

2.0 

04 

9 

0.5 

20 

O.I 

0.5 

O.I 

10 

0.4 

50 

0.2 

0.4 

50 

0.2 

O.J 

50 

O.I 

1.0 

0.5 

II 

1.0 

10 

or 

1.5 

40 

0.6 

2.5 

O.T 

12 

l. 

20 

O.Z 

10 

20 

0.2 

2.0 

0.4 

UI3 

Q 

10 

0.0 

0.5 

10 

O.I 

O.S 

20 

O.I 

1.5 

ae 

U14 

0 

20 

O.I 

O.S 

O.I 

UI5 

0. 

20 

O.I 

O.I 

80 

O.I 

.0.5 

0.2 

UI6 

9 

10 

0.2 

•  2.0 

20 

0.4 

1.0 

20 

0.2 

5.0 

0.8 

un 

1. 

10 

O.I 

iO 

20 

0.2 

2.0 

0.3 

UI8 

1.0 

10 

O.I 

1.0 

ai 

u 

Effectiveness  of 
Directi  on,  Contro 

TOTAL 

n.i 

tt 

5.4 

1.2 

1.1, 

5.3 

C   30.0 

9   7.4 

GRAND  TOTAL 

51.4 

6.5 

11.8 

1.9 

36.8 

19.6 

d  100 

h  28.0 

256 


WASTE  IN  INDUSTRY 


FIELD    REPORT  EVALUATION 

COMM1TTE.E  ON    ELIMINATION    OF   WASTE    IN   INDUSTRY 
AMERICAN    ENGINEER  KG  COUNC  L 
OF 

INDUSTRY  Tex  We                 PLANT  NO.  9                             EST.  BY  M.  F.  B  .»  Co.                                 DATE  3/IS/ll 

>    ©  +  ©  +  (D  =  ®  Excellent  -=°J°Wa^e       Poor  =-60°|o  Waste                  a  +  b  +  C  =  d  =  I00°/o 

CAUSES 

Guide 
Questions 
for 
Field 

gator 

R 

ESPONSIBI   LIT1 

:s 

TOTAL 

WASTE 

teigned 
Pomts 

Esflo 
Waste 

Points 
Waste 

Assiqnet 
Point! 

Waste 

Points 
Vtas* 

ssigned 
Points 

Est.°|o 
Waste 

Points 
Waste 

ssigned 
fonts 

Points 
Waste 

1 

4- 

5 

8 

9 

10 

II 

1? 

13 

14 

Tl  0  N 

ds  (Paperwork!  and  Personnel, 
ity  and  Relationship 

K< 

KZ 

3.0 

90 

2.7 

3.0 

2-7 

JS3.  

K5 

.5 

100 

1.5 

0.5 

60 

0.3 

2.0 

1.8 

Kt 

K7    _ 

K8 

4.0 

£0 

2.4 

2.5 

40 

1.0 

1.5 

40 

0.6 

8.0 

4.0 

wJ 

KIO 

0-5 

20 

O.I 

0.2 

20 

O.I 

1-3 

40 

0.5 

2.  ) 

(  .7 

Kll 

KI2 

=g 

KI3 

KI4 

1-0 

40 

0.4 

1.0 

40 

0.4 

0.2 

50 

O.I 

2.Z 

0.9 

KI5     , 

100 

0.3 

0.2 

100 

O.Z 

0.5 

0.5 

0  R  6  A 

Mechanism  of  Industry  as  to 
Assignment  a  nd-Oischarge  of 

KJ8 





K19 

0.3 

100 

0.3 

0.3 

0.3 

KM 

1.0 

80 

0.8 

1.0 

50 

0.5 

2.0 

1.3 

Kll 

0.5 

60 

0.3 

0.5 

40 

0.2 

.0 

0.5 

TOTAL 

14. 

9.1 

6.4 

26 

45 

1.1 

0    250 

e  13.5 

11 

3.0 

30 

1.0 

1.0 

T? 

40 

1.2 

1.2 

TJ 

3.0 

60 

1.8 

1.8 

T4 

3.0 

60 

1.8 

1.8 

TS 

3.0 

20 

0.6 

0.6 

T  ECH  NIC/ 

Available  Engineerim 
as  to  Product,P|ant  an 

5.0 

40 

2.0 

2*.o 

70 

[6    ': 

30.0 

18.5 

TOTAL 

20.0 

8.4 

7.  ',  0 

16.5 

b"0 

f|24.9 

UTILIZATION 

Effectiveness  of  Technical  Knowledge  and  Organization. 
Direction,  Control  and  Accounting  Factors 

Ul 

2.0 

60 

L2 

2.0 

1.2 

uz 

1.0 

30 

1.0 

80 

0.8 

2.0 

iwVi 

U4 

2.0 

06 

20 

0.6 

U5 

US 

0. 

40 

0.2 

0.2 

Ul     1 

3. 

20 

0  fe 

2.0 

80 

l.fe 

2.2 

0. 

100 

0.5 

0.5 

40 

0.2 

1.0 

80 

0.8 

.5 

U9 

0. 

100 

0.5 

05 

UK) 

0. 

50 

0-2 

0.4 

80 

0.3 

0.2 

50 

01 

0.6 

Ull 

J, 

50 

0.5 

I.S 

60 

0.9 

1.4 

UIZ 

1. 

20 

0.2 

1.0 

20 

0.2 

0 

0.4 

yjj 

0. 

0.5 

20 

O.I 

0-5 

20 

O.I 

0.2 

UI4 

0. 

20 

O.I 

O.I 

Ul! 

0. 

20 

O.I 

O.I 

80 

O.I 

0.2 

Ult 

2. 

10 

0.2 

2.0 

20 

0.4 

1.0 

30 

0.3 

0 

0.9 

1. 

10 

O.I 

1.0 

20 

0.2 

0 

Ul* 

1. 

10 

O.I 

0 

0.1 

TOTAL 

17  } 

5.4 

5.4 

1.4 

7.3 

4.7 

C  ?C:3 

9  !'  r' 

GRAND  TOTAL 

51.4 

23.0 

11.8 

4.0 

368 

22.9 

d  loo.o 

h  "9  a 

THE  TEXTILE  INDUSTRY 


257 


FIELD    REPORT  EVALUATION 

OF 

INDUSTRY  Text'le                 PLANT  NO.  10                          EST.  BY  M.F.S.  *  Co.                            DATE3///A/ 

>    ©  + 

(5)  +  ®  -®  Excellent  =0%Wasfe         Poor=60%Waste                    a  +  b  +C  =d  =  I00°/o 

®  +  ®  =  ®  ?a°°rd    3$:  ;;     B0d  =8070  .          e+f+9^=  °/0  Waste 

CAUSES 

Question 
for 
Field 
Investi- 
gator 

Points 

Est°/o 
Waste 

Points 
Waste 

ssigna 

Est.0/o 
Waste 

Vaste 

Points 

Est°/o 
Waste 

Waste 

Issigned 

Points 
Waste 

1 

C 

3 

5 

10 

|| 

^ 

K 

3.0 

10 

0.3 

3.0 

0-3 

K 

K 

N 

.1 

60 

0.9 

0.5 

60 

0.3 

Z.O 

I.Z 

£ 

K7 

1  7.  AT  1  0  N 

,  Methods  (PopecW 
JOnsibility  and  Re 

—  —  - 

_4.0_ 



_L2_ 

—  — 

_  , 



10 

0.5 

ZO 

O.| 

O.Z 

1.3 

20 

0.3 

2-0 

0.4 

11      ] 

2 

13 

KM. 

.0 

EO 

O.Z 

1.0 

20 

02 

O.Z 

40 

0  1 

22 

0.5 

K.  5 

<  S  t 

10    o  g, 

KI6 

0.3 

100 

0.3 

o.z 

100 

0.2 

(.5 

0.5 

K  7 

2-0 

1.0 

1.0 

ZO 

0-Z 

.C 

O.Z 

KI8 

K19 

^   i 

30 

0.1 

(.3 

O.I 

K20 

.0 

40 

0,4 

1.0 

ZO 

0.2. 

.0 

0.6 

H2I 

0.5 

40 

o.z 

0.5 

40 

0-Z 

.0 

0.4- 

C   § 

«   1 

g    c 

£  < 

TOTAL 

14.1 

4.5 

6.4 

1.8 

4.5 

I.S 

dj  2.5.0 

e|7.8' 

T| 

.0 

:  .0 

CT1~ 

T2 

.0 

60 

8 

.0 

1.8 

"S    C 

TI 

.0 

40 

2 

.0 

1.2 

T+ 

.0 

60 

8 

'  ,0 

1.8 

,=  Z 

TS 

.0 

40 

Z 

'  .0 

1.2 

T6       X 

DO 

£5    AA 

OT  A  t 

p  y 

TO    Tf 

£    rc 

X  TIL  E 

/A/* 

US  T 

RY 

C    ° 

T7 

5.0 

80 

.0 

25.0 

60 

15.0 

30.0 

19.0 

aJ    C 

ais 

u7  tj 

•U    -0 

11 

^  8 

TOTAL 

ZO.O 

lo.o 

Z5.0 

15.0 

b|45.0 

f|25.0 

T  1  O  N 

wiedgeand  Organization 
ing  Factors 

Ul 

Z.O 

ZO 

0.4 

2.0 

0.4 

UZ 

.0 

zo 

0-Z 

1.0 

80 

08 

2.0 

1.0 

U3h 

U4 

z.o 

60 

•Z 

Z.O 

I.Z 

us 

us 

0.5 

zo 

O.I 

0 

O.I 

in 

•  3.0 

10 

0.3 

Z.O 

60 

I.Z 

5 

1.5 

0.5 

80 

0-4 

05 

60 

0.3 

1-0 

80 

0.8 

2 

1.5 

U9 

0.5 

•'•  '>     1 

O.I 

C 

O.I 

I  10 

0.4 

SO- 

0.3 

04 

80 

0.3 

O.Z 

90 

O.Z 

0.8 

Ull 

1.0 

SO 

0.3 

1.5 

60 

0.9 

Z 

1.2 

uiz 

1.0 

30 

y 

1.0 

40 

0.4 

2.) 

0.7 

UI4 

0.5 

20 

O.I 

0 

0-1 

IU  T  1  L  1  • 

Effectiveness  of  Technica 
Direction,  Control  and  Ace 

U  5 

0.4 

100 

D  .: 

O.I 

80 

0-1 

0 

0.5 

U16 

2.0 

40 

0.8 

2.0 

60 

'•Z 

1.0 

40 

0.4 

5.  ) 

Z.4 

U17 

,0 

30 

03 

1.0 

50 

0.5 

2 

0.8 

UM 

.0 

40 

04 

I 

0.4 

TOTAL 

73 

5.8 

5.4 

2.9 

7.3 

d  6 

c  - 

913.3 

GRAND  TOTAL 

5  .4 

20.3 

11.8 

4.T 

36.8 

21.  1 

djioo.o 

h|46. 

258 


WASTE  IN  INDUSTRY 


FIELD    REPORT    EVALUATION 

COMMITTEE   ON     ELIMINATION    OF    WASTE      N     INDUSTRY 
AMERICAN     ENGINEERING    COUNCIL 
OF 
THE     FEDERATED    AMERICAN    ENGINEERING    SOCIETIES 

INDUSTRY  Textile                  PLANTNO.//                               EST.  BY*  -F.B  »Co.                                DATE-V'^/?/ 

CAUSES 

Guide 

R  ESPONSI  B  1  UITI  ES 

TOTAL  WASTE 

for 
Field 

Investi- 
gator 

MANAGEMENT 

OUTSIDE    CONTACTS 

Assigned 

Points 
Waste 

Assigned 

Points 

Est.%        Points 
Waste      Waste 

Assigned      Est.% 
Points        Waste 

Plinh 

Waste 

Assigned 
Points 

Est.  °/o 
Waste 

Points 
Waste 

ON 

PaperWork)ond  Personnel, 
y  and  Relationship 

Kl 

2 

3.0 

100 

1.0 

vo 

vo 

3 

4 

5 

1.5 

100 

I.S 

O.S 

60 

0.3 

2.0 

18 

6 

7 

8 

4.0 

90 

36 

2.5 

40 

1,0 

IS 

40 

0.6 

8.0 

5.2 

9. 

10 

O.S 

20 

O.I 

0.2 

00 

O.o 

M 

20 

0-3 

J.O 

04 

I--S- 

It 

OR  G  A  N  IZA 

Mechanism  of  Industry  asto  Type,Metho 
Assignment  and  Discharge  of  Responsib 

13 

1.0 

20 

0.2 

1.0 

JO 

0.2 

0.2 

40 

O.I 

2.2 

O.S 

(15 

(16 

0.1 

100 

03 

02 

100 

0.2 

O.S 

O.S 

17 

20 

50 

1.0 

10 

so 

05 

1.0 

SO 

os 

4.0 

3.0 

(18 

19 

0.3 

100 

0.3 

OJ 

0.1 

20 

1.0 

so 

OS 

1.0 

so 

0.5 

20 

1.0 

K2I 

OS 

80 

0.4 

0-S 

80 

04 

1.0 

08 

TOTAL 

I4.| 

1C.  9 

6.4 

28 

4.5 

1.8 

a]  25.0 

e   is 

AL 

3  Knowledge 
id  Materials 

| 

3.0 

20 

0.6 

3.0 

0.6 

z 

JO 

SO 

I.E 

5.0 

.s 

5 

3.0 

40 

3.0 

1.2 

4 

3.0 

TO 

•?l 

3.0 

5 

J.O 

40 

12 

3.0 

U 

TECHNIC 

Available  Engineerin 
as  to  Product,  Plant  a 

T7 

5.0 

60 

30 

JS.O 

60 

15.0 

JO.O 

IS.O 

TOTAL 

?0.0 

9.6 

25.0 

15.0 

b*s.o 

f   24.6 

ATION 

Knowledge  and  Organization, 
unting  Factors 

U2 

1.0 

so 

as 

1.0 

60 

0.6 

J.O 

j  4 

20 

60 

12 

2.0 

1.2 

U  5 

U6 

O.S 

60 

0.1 

0.5 

0.3 

U7 

3.0 

60 

1.8 

2.0 

SO 

1.0 

5.0 

2.J 

u&Y- 

os 

100 

O.S 

os 

60 

0.3 

1.0 

80 

0.8 

J.O 

6 

U9 

0.5 

£0 

0.3 

OJ 

OJ 

UIO 

0.4 

60 

0.1 

04 

80 

0  1 

0.2. 

60 

O.I 

1.0 

O.S 

U  1 

1.0 

60 

0.6 

1.5 

60 

0.9 

2.S 

UIZ 

1.0 

50 

0.5 

1.0 

SO 

O.S 

2.0 

1 

UIJ 

as 

40 

02 

O.J 

40 

0.2 

0.5 

40 

0? 

1.5 

0 

JI4 

0.5" 

40 

0.2 

OS 

0 

UTILI  Z 

Effectiveness  of  Technical 
Direction,  Control  and  Acco 

U.5 

04 

SO 

0.2 

0.1 

SO 

O.I 

0.5 

( 

uie 

20 

50 

J.O 

SO 

1.0 

1.0 

50 

0.5 

5.0 

2 

U  7 

1.0 

30 

0.3 

1.0 

40 

0.4 

2.0 

0 

UJ8 

1.0 

40 

04 

C4 

TOTAL 

11.3 

9.9 

5.4 

M 

1.3 

4.2 

C   50.0 

g  -5  8 

GRAND  TOTAL 

SI4 

|    30.4- 

11.8 

55 

368 

21.0 

djIOO 

h.s;? 

THE  TEXTILE  INDUSTRY 


259 


FIELD    REPORT  EVALUATION 

COMMITTEE    ON    ELIMINATION     OF   WASTE    IN    INDUSTRY 
AMERCAN     ENGINEERING    COUNCL 
OF 
THE    FEDERATED   AMERICAN   ENGINEERING    SOC   ETIES 

INDUSTRY  Textile              PLANT  NO.  IZ                          EST.  BY  M.  F.B  *  Co.                            DATE  -?/«/*/ 

1  tT\    ft?\     f~^    f^\  r     11 

>r*=°$>vtaste     Poor    =  60°|oVtaste                a  +  b  +  C  =d  =  I00°lo 
llo^o  '.!        Bad     =  So^oWaste               e-i-f-i-g=h=   °lo  Waste 

*|®  +  ®  +  ®-®  Fa°rd 

CAUSES 

Guide 

E  S 

TOTALV(ASTE 

for 
Field, 
nvesti- 

OUTSIDE    CONTACTS 

Points 
Waste 

tfmts 

Est.°lo 
Waste 

Points 

S 

Est.°|o 
Viaste 

Points 
Waste 

Assigned 
Points 

Est.°lo 
Waste 

Points 
Waste 

issigned 
Points 

_- 

Kl 

£ 

K2 

5.0 

20 

0.6 

3.0 

0.6 

0 

K3 

i£!  c. 

K4  / 

5 

1.5 

100 

1.5 

0.5 

60 

0.3 

20 

1.8 

(6 

je  V 

7 

5   "w 

8 

4-0 

40 

1.6 

2.5 

40 

1-0 

1.5 

40 

0.6 

8.0 

3.2 

r  fc  * 

9 

-^fr  - 

l£ 

<  3  •  ^ 

13 

2»     c_  £ 

16 

0.3 

20 

O.I 

O.I 

10 

0.0 

O.S 

O.I 

<sl 

KI1  1 

20 

20 

0.4 

1.0 

20 

0.2 

1.0 

20 

0.2 

4.0 

0.8 

o  |  S 

SttJ 

03 

30 

O.I 

0-3 

O.I 

•t  J: 

K20 

30 

0.3 

t.o 

40 

0.4 

2.0 

0.1 

o   «  & 

K_J| 

0.5 

20 

O.I 

0.5 

20 

O.I 

1.0 

0.2 

"S? 

V  g 

It 

1  1 

§    m 

w  < 

TOTAL 

14.1 

5.2 

6.4 

2.1 

4-5 

1.1 

Q|  25.0 

•E 

Tl 

3.0 

10 

0.3 

3.0 

0.3 

tl 

T2 

3-0 

20 

0  G 

3.0 

o.c 

1 

T3 

3.0 

20 

C.6 

3.0 

0.6 

JJ| 

3.0 

60 

1-8 

1.0 

1-8 

* 

TS 

3.0 

20 

0.6 

0.6 

o  -f  § 

Tl 

5.0 



60 

3.0 

?5.0 

TO 

n.s 

30.0 

go5 

T     Si    C 

^      '§^0^ 

j^tr 

3  S 

TOTAL 

?0.0 

6.9 

25.0 

n.s 

b|45, 

•    24.4 

Ul 

2.0 

TO 

1.4 

1.4 

.; 

UJ 

1.0 

1.0 

-o 

0.1 

?.o 

.  r 

1 

U3>i 

0 

114 

2.0 

60 

1.2 

2.0 

1-2 

•c 

US 

U6 

0-5 

60 

0.3 

0.5 

0.3 

1" 

n 

J.O 

SO 

I.S 

2.0 

CO 

1-2 

5.0 

2.1 

•c  e 

IRh1 

0.5 

60 

0.3 

0.5 

40 

0.2 

1.0 

40 

0.4 

2.0 

0.9 

Z  o  £ 

U9 

0.5 

60 

0.3 

0.5 

UIO 

04 

50 

0.2 

04 

50 

0.2 

0.2 

O.| 

.0 

O.S 

Ull 

1-0 

20 

O.J 

40 

0.6 

2.5 

0.8 

1—  —   c? 

UI2 

1.0 

20 

O.T 

1.0 

20 

0.2 

0.4 

U  3 

0.5 

20 

O.S 

20 

O.I 

0.5 

20 

O.I 

1.5 

UI4 

0.5 

40 

0.2 

O.S 

0.2 

UI5 

04 

20 

O.I 

O.I 

80 

0-1 

0.5 

02 

U  T  1  L 

Effectiveness  of  Techn'ic 
Direction,  Control  and  A 

20 

40 

0.8 

2.0 

40 

0.8 

1.0 

40 

0.4 

5.0 

2.0 

11 

1.0 

40 

0.4 

1.0 

40 

0.4 

2.0 

0.8 

uie 

1.0 

10 

O.T 

1.0 

O.T 

TOTAL 

11.3 

8.3 

5.4 

1.9 

1.3 

3.6  ' 

C  30.0 

g  13.8 

GRAND  TOTAL 

51.4 

20.4 

11.8 

4.0 

36.8 

22.8 

100 

h  41.2 

260 


WASTE^IN  INDUSTRY 


FIELD    REPORT    EVALUATION 

AMERICAN     ENGINEERING    COUNC  L 
OF 
THE     FEDERATED    AMERICAN     ENGINEERING     SOCIETIES 

INDUSTRY  Tex  tile               PLANT  NO.  13                            EST.  BY  M.  F.  BACo.                           DATE  3/ts/fi 

£©  + 

*   (4)   , 

®  +  d 

®  +  <d 

)  -@    Excellent-  0%  Waste     Poor  .60%Wast«                     af  b+  c-  d-|OO% 
)  -®    Sir         -  40%   »         Bad   -80%     "                          «*  f+  9-  h-  0%WoSte 

CAUSES 

Guide 
Question 

Feld 
Investi- 
gator 

R 

ES  PO  N  SI  B  1  LIT!  1 

;8 

TOTAL  WASTE 

Assigns 
feints 

!  i 

Es 
We 

~~ZH 

•% 
stc 

~-  5- 

Pomts 
Waste 

bMgnei 

Points 

Est.% 
Waste 

(feints 
Waste 

Assignee 
Points 

Est.  % 
Waste 

Points 
Vltaste 

Assigned 
Ftomts 

Points 
Waste 

h  5" 

6 

1 

$ 

g 

J<J 

U 

14 

13 

14 

I, 

-?    § 

KJ    ) 

K? 

3,0 

80 

24 

3.0 

2.4 

KJ 

K4' 

KS 

•6 

fcO 

0.9 

0.5 

60 

0.3 

2.0 

U 

*I1 

2g.c 

2£j. 

K8 

4.0 

80 

3.2 

2.5 

60 

1.  5 

1.5 

60 

0-9 

80 

56 

K9 

K  10 

0,  5 

20 

0. 

0.  Z 

20 

1.3 

40 

0.5 

2.0 

0.6 

KM    , 

N  IZAT 

pe,  Methods 
Responsibil 

KIS 

KM 

1.0 

40 

0.4 

1.0 

40 

0.4 

02 

50 

1.0 

22 

J 

KI5. 

KI6 

100 

0.2 

IOO 

0  2 

0.5 

0  5 

<TS 

K  17 

20 

1.0 

40 

0.4 

1.0 

60 

06 

4.0 

4 

*•£  s, 

K  18 

*s  ? 

K  19 

100 

0.3 

0.3 

ojTl 

K20 

40 

(.0 

40 

0.4 

2.0 

y 

S| 

K31 

80 

OS 

80 

0.4 

1.0 

0.8 

1  -a 

^   g 

1    c 

£    | 

•§•? 

jr    <: 

TOTAL 

4.1 

8.8 

6.4 

'    i 

4.5 

3.3 

a.  .  '  . 

e  !5.4 

OJ      t/> 

T  t 

3.0 

30 

3.0 

0.9 

|| 

T  Z 

3.0 

90 

3.0 

2.7 

T3 

3.0 

80 

3.0 

2.4 

-l|| 

T4 

3.0 

80 

3.0 

2.4 

<il 

T  5 

3.0 

30 

3.0 

0.9 

~~  fc  "c 

T  7 

5.0 

40 

Z.O 

J5.0 

40 

10.0 

30.0 

12.0 

2£  § 

Z-|>E 

<J£  f 

w  *  •§ 
»-|l 

II 

TOTAL 

20.0 

11.3 

25.0 

10.0 

bJ45.0 

f    213 

J  Organization, 

U  1 

2.0 

80 

.6 

20 

1.6 

I    Z 

.0 

40 

.4 

1.0 

60 

0.6 

2.0 

10 

Jh 

Z  0 

GO 

.2. 

2.0 

1.2 

5      i 

e> 

0 

80 

.4 

0.5 

0.4 

7 

80 

.4 

2.0 

60 

1.2 

5.0 

|8 

IZ  ATI  ON 

cal  Knowledge  an 
ccounting  Factors 

9 

0. 



100 

— 



1  :  

OS 

'0.5 

10 

0. 

50 

2 

0.4 

50 

0.2 

0.2 

50 

O.I 

.0 

0.5 

M 

10 

2 

1.5 

40 

0.6 

2.5 

0.8 

UI2 

20 

20 

0.2 

20 

0.4 

UIJ 

0 

20 

0-5 

20 

O.I 

0-5 

20 

O.I 

.5 

0.3 

U  14 

0 

40 

2 

05 

02 

UI5 

0.' 

20 

(.1 

O.I 

80 

O.I 

O.b 

0.2 

UTI  L 

veness  of  Techn 
ion,  Control  and  / 

JI7 

40 

(  4 

1.0 

40 

0.4 

2.0 

0.8. 

U  16 

10 

30 

3 

;.o 

0.3 

II 

TOTAL 

173 

9.8 

5.4 

1.9 

7.3 

3.5 

C  30.0 

g  15.2 

GRAND  TOTAL 

Sl.4 

19.9 

11.8 

5.2 

3t.8 

16.8 

dl009 

hsi.9 

PART  III 
GENERAL  REPORTS 

PAGE 

CHAPTER       XI.  UNEMPLOYMENT 263 

CHAPTER     XII.  STRIKES  AND  LOCKOUTS 301 

CHAPTER    XIII.  LEGAL  MACHINERY  FOR  ADJUSTING  DISPUTES      ....  315 

CHAPTER    XIV.  INDUSTRIAL  ACCIDENTS 331 

CHAPTER      XV.  HEALTH  OF  INDUSTRIAL  WORKERS 342 

CHAPTER    XVI.  EYE  CONSERVATION 374 

CHAPTER  XVII.  PURCHASING  AND  SALES  POLICIES           391 


INTRODUCTORY   NOTE 

THE  topical  reports  in  this  section  are  markedly  different  from  the 
engineering  reports  which  go  before.  The  Committee's  plan  for  the 
investigation  of  waste  provided  not  only  for  a  series  of  intensive  field 
studies  made  at  first-hand  by  engineers,  but  also  for  general  summaries 
of  available  information  on  special  topics  compiled  by  statisticians,  econ- 
omists and  others.  Original  research  was  out  of  the  question.  A  digest 
of  matter  easily  available  was  all  that  the  Committee  asked  or  expected, 
and  the  writers  of  the  reports  which  follow  would  be  the  first  to  point 
out  that  their  contributions  are  neither  exhaustive  nor  new.  The  Com- 
mittee believes  they  are  valuable  because  they  are  an  attempt  to  bring 
up  to  date  in  small  compass  certain  broad  aspects  of  waste  in  industry 
and  its  elimination. 

The  author  of  each  report  is  solely  responsible  for  its  accuracy  and 
fairness. 


CHAPTER  XI 

UNEMPLOYMENT 

BY  JOHN  KOREN  AND  OTHERS 

INTRODUCTORY 

Lack  of  Systematized  Elemental  Information. — An  exact  measure- 
ment of  unemployment  and  the  causes  underlying  it  are  lacking  for  the 
country  as  a  whole  and  even  for  individual  industries.  Nor  has  there 
been  a  thorough-going  test  of  the  means  whereby  employment  generally 
can  be  stabilized  and  industries  put  on  a  basis  that  will  secure  an  even 
flow  of  productive  activity.  Seasonal,  mechanical  and  other  factors 
that  necessarily  make  for  unemployment  are  easily  demonstrated,  but 
little  attempt  has  been  made  to  record  their  influence  as  revealed  by  an 
intensive  inquiry  conducted  along  broad  lines;  our  knowledge  is  in 
consequence  fragmentary  and  cannot  point  to  remedial  practices  that 
have  stood  every  test. 

Need  for  Continuous  Information. — For  the  United  States  as  a 
whole  there  has  been  no  single  agency  charged  with  the  collection  of 
unemployment  statistics  and  other  data  for  their  proper  interpretation. 
From  time  to  time,  the  Bureau  of  Labor  Statistics  compiles  unemployment 
figures  for  a  number  of  establishments  in  some  of  the  leading  industries; 
and  in  a  very  few  states  public  offices  systematically  gather  information 
about  the  employment  situation.  For  particular  industries  data  on  the 
subject  are  secured  by  employers'  associations.  Trade  unions  also  con- 
cern themselves  with  unemployment  statistics  of  most  crafts;  indeed,  in 
some  states  the  trade  union  statistics  are  regularly  published  by  the 
official  labor  bureaus.  Employment  facts  are  also  gathered  by  private 
organizations,  which  supply  such  data  to  their  clients  on  a  commercial 
basis. 

In  short,  the  fundamental  knowledge  required  to  present  a  survey  of 
the  unemployment  situation  at  any  period  must  be  pieced  together  from 
the  gleanings  of  many  agencies,  which  are  not  subject  to  any  central 
control. 

Employment  figures  comparable,  for  instance,  to  those  collected  in 
England  by  the  Board  of  Trade  are  not  compiled  in  the  United  States. 
The  recently  inaugurated  plans  of  the  United  States  Employment 
Service  aim  to  remedy  this  lack  through  regular  bulletins,  which  will 
contain: 

263 


264  WASTE  IN  INDUSTRY 

1.  A  graphic  line  showing  the  national  trend  of  employment. 

2.  A  table  showing  the  percentage  of  increase  or  decrease  from  the  preceding 
period  in  the  fourteen  industrial  groups  set  up  by  the  United  States  Bureau 
of  the  Census. 

3.  A  table  showing  a  geographical  analysis  of  the  first  table,  indicating  the 
areas  of  increase  or  decrease  in  employment. 

4'  Comment  on  the  employment  situation  in  231  leading  industrial  centers. 

5.  Data   regarding  registrations,   requirements   and  placements   of  labor  by 
federal,  state  and  municipal  bureaus. 

6.  Immigration  and  emigration  data. 

Need  for  Regularizing  Employment. — It  would  be  a  long  step  forward 
to  get  continuous  information  about  unemployment  conditions  throughout 
our  vast  territory.  The  next  and  more  important  step  would  be  to  devise 
means  for  regularizing  employment  in  the  principal  industries — a  task 
to  be  undertaken  by  those  who  conduct  them. 

This  report  on  unemployment  and  on  attempts  to  alleviate  it  is  divided 
as  follows : 

7.  Intermittent  Employment 

A.  Temporary  Shutdowns  and  Layoffs 

B.  Seasonal  Employment 

1.  Seasonal  Industries  Employing  Skilled  Workers 
(a)  The  Building  and  Allied  Trades 

(6)  Coal  Mining 

(c)'  The  Clothing  Industry 

2.  Seasonal  Trades  Employing  Unskilled  Labor 
(a)  Agriculture 

(6)  Canning  and  Preserving 

(c)  The  Lumber  Industry 

(d)  Dock  Labor 

(e)  Employment  of  Casual  Labor  in  Winter 
II.  Climacteric  Unemployment 

///.  Residual  Unemployment 
IV.  Employment  Exchanges 

A.  In  United  States 

1.  Public 

(a)  Federal 

(6)  State 

(c)   Municipal 

2.  Semi-public 

3.  Private 

(a)  Commercial  Employment  Agencies 

(6)  Employers'  Associations'  Employment  Bureaus 

(c)  Trade  Union  Employment  Bureaus 

B.  In  Foreign  Countries 

1 .  Great  Britain 

2.  Canada 

3.  Italy 

4.  Other  Foreign  Countries 
V.  Public  Works 


UNEMPLOYMENT  265 


VI .  Unemployment  Insurance 
VII.  Spreading  out  the  Job 
VIII.  Immigration  and  Unemployment 


I.  INTERMITTENT  EMPLOYMENT 

A.  Temporary  Shutdowns  and  Layoffs. — An  element  frequently  over- 
looked in  the  unemployment  situation  is  what  opportunity  do  workers 
nominally  employed  have  to  work  a  full  week  and  to  draw  a  full  week's 
pay.  For  instance,  a  report  of  the  Connecticut  Commission  on  the 
Condition  of  Wage-earning  Women  and  Minors  in  1913  showed  that  for 
942  females  in  the  cotton  industry,  the  weekly  earnings  were  13.9  % 
less  than  full-time  earnings;  in  the  silk  industry,  1,175  females  re- 
ceived 18.2%  less  than  full-time  earnings;  in  brass  factories,  662  females 
received  14.1%  less;  and  in  the  metal  trades,  2,541  females  received 
less  than  13.9%  full-time  earnings.  The  frequent  layoffs  for  half-days 
and  days  in  the  bituminous  coal  industry  are  another  case  in  point.1 

During  1919  in  the  paper  box  industry,2  4,311  employees  in  77 
establishments  averaged  90%  of  full  time;  in  the  women's  clothing 
industry,  6,772  women  workers  employed  in  157  establishments  averaged 
91%;  in  the  confectionery  industry,  12,152  workers  in  101  establishments 
averaged  87%;  and  in  the  overall  industry,  6,546  workers  in  129  estab- 
lishments averaged  87%  of  full  time.  In  the  brick,  3  chemical  and  glass 
industries  the  percentage  of  full  time  worked  was  85, 84  and  87  respectively. 
When  this  record  is  examined  in  detail,  it  appears  that  some  classes  of 
workers  are  more  frequently  put  on  short  time  than  others.  White  goods 
finishers  averaged  79%  of  full  time,  though  the  average  for  the  women's 
clothing  industry  as  a  whole  was  91%.  Laborers  in  the  brick  industry 
worked  77%  of  full  time,  while  the  average  for  the  industry  as  a  whole 
was  85%.  Any  number  of  similar  examples  might  be  cited. 

Causes  of  Temporary  Shutdowns  and  Layoffs. — Among  the  leading 
external  factors  resulting  in  temporary  shutdowns  and  layoffs  are  trans- 
portation difficulties.  The  consequences  of  car  shortage  are  well  known 
in  reference  to  the  bituminous  coal  industry.  In  other  industries  delayed 
deliveries  have  the  same  disorganizing  effect,  frequently  resulting  in 
partial  or  total  plant  shutdowns  for  lack  of  fuel  or  raw  materials. 

Restriction  of  production  by  the  manufacturer  in  order  to  secure 
price  control  is  another  cause  of  temporary  unemployment.  The  present 
attempt  of  the  Japanese  silk  industry  artificially  to  maintain  prices  is  an 
instance  in  point. 

1  Tonnage  Output  per  Pick  Miner  per  Day  in  Bituminous  Coal  Fields.     Ethelbert 
Stewart.     Monthly  Labor  Review,  February,  1921. 

2  Monthly  Labor  Review,  April,  1920. 

3  Monthly  Labor  Review,  May,  1920. 


266  WASTE  IN  INDUSTRY 

Even  when  it  is  the  purpose  of  the  management  to  insure  regularity 
of  employment  there  are  many  failures  in  the  performance.  The  failure 
of  the  sales  department  to  secure  orders  may  disturb  the  continuity  of 
factory  operation.  In  the  aggregate  a  large  amount  of  time  is  lost 
through  layoffs  of  men  in  a  single  department  or  sections  of  a  department 
through  inefficient  management  manifested  by  poor  stock  methods, 
inefficient  routing,  neglect  of  equipment  and  the  like.  The  failure  to 
have  necessary  parts  in  stock,  the  irregular  flow  of  material,  machine 
breakdowns  and  similar  accidents,  which  an  efficient  organization  should 
eliminate,  result  in  a  continual  nibbling  at  the  employees'  time.  Shut- 
downs for  the  annual  inventory  are  another  survival  of  the  past,  which 
mean  a  total  in  all  industries  of  many  lost  days  in  the  year. 

Methods  of  scientific  management  have  greatly  reduced  the  layoffs 
resulting  from  lack  of  organization.  The  chief  service  of  scientific  manage- 
ment in  eliminating  layoffs  and  shutdowns  is  the  removal  of  the  unexpected 
through  the  standardization  of  all  elements  in  the  manufacturing  process. 

B.  Seasonal  Employment. — Seasonal  industries  may  be  divided  for 
convenience  into  two  general  classes: 

1.  Those  employ  ing -a  large  number  of  skilled  and  semi-skilled  workers 
who  depend  upon  the  industry  for  livelihood  during  the  year.     Such 
industries  are  the  building  trades,  coal  mining,  the  clothing  trade,  etc. 

2.  Those  employing  casual  unskilled  laborers  who  travel  from  place 
to  place  as  the  demand  appears,  such  as  farming,  lumbering,  canning,  etc. 

Workers  engaged  in  the  industries  in  class  1  either  must  be  paid  a 
wage  substantially  above  that  prevailing  in  other  industries  or  must 
suffer  great  privation  during  the  periods  of  unemployment  now  inherent 
to  the  industry. 

1,  SEASONAL  INDUSTRIES  EMPLOYING  SKILLED  WORKERS 

(a)  The  Building  and  Allied  Trades. — The  building  trades  form  the 
most  important  of  the  industries  included  in  class  1.  According  to  the 
latest  available  census  figures,1  there  were  1,779,964  skilled  workers  and 
934,909  unskilled  workers  depending  on  these  trades  for  a  livelihood. 
The  total  is  3.8%  of  the  classified  population  in  1910.  Due  to  war  activi- 
ties this  proportion  of  building  workers  has  possibly  increased. 

Although  somewhat  in  conflict  with  recent  tendencies  toward  speciali- 
zation in  construction  work,  some  measures  taken  to  regularize  employ- 
ment in  building  have  met  with  success  according  to  the  testimony  of  a 
number  of  contractors.  Briefly  stated  they  are: 

1.  To  bid  for  varied  types  of  construction. 
1  U.  S  Census,  1910. 


UNEMPLOYMENT 


267 


2.  To  shave  down  bids  for  contracts  to  carry  their  organization  through' 

dull  periods. 

3.  To  accept  the  policy  of  taking  small  and  perhaps  unremunerative 

contracts  so  that  the  working  force  not  engaged  in  the  large 
undertakings  may  be  utilized. 

Brick  and  Tile  Products. — The  manufacture  of  brick  and  tile  products 
is  more  seasonal  in  character  than  building  as  it  depends  on  construction 
work  for  its  market  and  is  more  or  less  affected  by  weather  conditions. 

According  to  the  U.  S.  Census  of  Manufactures,  1914,  there  were 
100,182  workers  employed  in  this  industry.  It  is  estimated  that  not  more 
than  50,000  of  them  are  employed  in  the  mid-winter  months. 

(6)  Coal  Mining. — Next  to  the  building  and  allied  trades,  coal  mining 
is  the  most  important  industry  in  the  first  class  of  seasonal  industries. 
There  are  over  750,000  men  employed  in  coal  mining  who  are  idle  during 
a  substantial  portion  of  the  year. 

The  number  of  employees  and  the  average  number  of  days  worked 
for  a  6-year  period  are  reported  as  follows  by  the  U.  S.  Geological  Survey.1 


ANTHRACITE 

BITUMINOUS 

Year 

Men  Employed 

Days  Worked 

Men  Employed 

Days  Worked 

1913 

175,745 

257 

571,882 

232 

1914 

179,679 

245 

583,506 

195 

1915 

176,552 

230 

557,456 

203 

1916 

159,869 

253 

561,102 

230 

1917 

154,174 

285 

603,143 

243 

1918 

147,121 

293 

605,000 

252 

During  this  6  year  period  anthracite  miners  worked  on  an  average 
of  260.5  days  out  of  a  possible  308,  thus  losing  an  average  of  15.5%  of 
working  days.  Bituminous  miners  worked  on  an  average  of  226  days 
and  thus  lost  26.7%  of  possible  working  days. 

Bituminous  Coal  Mining. — The  principal  causes  of  irregularity  of 
employment  in  bituminous  coal  mining  are  the  seasonal  character  of 
the  market  and  the  inadequacy  and  irregularity  of  car  supply.  Another 
effect  of  the  seasonal  character  of  the  industry  is  that  it  breeds  unrest 
among  the  workers  who  are  constrained  to  much  idleness. 

The  report  of  the  United  States  Bituminous  Coal  Commission  says, 
1920: 


1  United  States  Geological  Survr  y      Preliminary  Report  on  the  Mineral  Resources 
of  the  United  States  in  1918,  1919. 


268  WASTE  IN  INDUSTRY 

"  The  coal  industry  is  a  part-time  industry.  The  number  of  idle  days,  out  of  a 
possible  308  working  days,  being  63  in  1918  and  115  in  1919.  On  the  average  for 
the  past  30  years,  the  number  of  possible  working  days,  when  the  mines  were  not 
in  operation,  was  93." 

It  was  estimated  that  America  requires  less  than  500,000,000  tons 
of  bituminous  coal  a  year,  while  the  capacity  of  the  mines  in  operation 
is  over  700,000,000  tons.  In  regard  to  foreign  consumption  the  Com- 
mission said: 

"  It  is  not  to  be  expected  that  exports  of  coal  will  increase  sufficiently  to  absorb 
a  perceptible  proportion  of  the  gap  between  the  demand  for  coal  and  the  capacity 
of  mines,  as  our  shipping-terminal  facilities  are  such  that  not  more  than  25,000,000 
tons  of  coal  a  year  can  at  present  be  exported." 

Means  proposed  for  standardizing  coal  production  include  a  plan 
advocated  by  the  miners  for  an  adjustment  of  work  hours  and  an  appeal 
to  industrial  consumers  and  to  the  railroads  to  co-operate  in  bringing 
about  an  even  demand  for  coal. 

The  union  miners  proposed  as  a  solution  a  6-hour  work  day  of  5 
days  per  week,  with  penal  rates  for  overtime.  They  claim  that  the 
30-hour  week  would  be  sufficient  to  produce  all  bituminous  coal  needed 
for  the  country  and  that  it  would  tend  to  distribute  production  more 
evenly  through  the  year. 

Any  plan  to  regularize  the  demand  for  coal  chiefly  involves  increased 
facilities  for  storage,  not  only  at  the  mines  but  at  railroad  terminals  and 
industrial  plants. 

Anthracite  Coal  Mining. — While  the  causes  of  irregularity  of  employ- 
ment in  anthracite  coal  mining  are  not  precisely  the  same  as  in  bituminous 
coal  mining,  the  degree  of  irregularity  is  at  least  as  great.  According  to 
the  report  made  to  the  United  States  Anthracite  Coal  Commission  by 
W.  Jett  Lauck,  on  behalf  of  the  United  Mine  Workers  of  America,  the 
anthracite  mine  workers  have  suffered  more  from  irregularity  of  employ- 
ment than  have  the  bituminous  mine  workers.  The  report  says: 

"  During  the  period  since  1881  the  anthracite  workers  have  had  an  opportunity 
to  work  on  an  average  only  212  days  out  of  each  year.  This  means  92  days  of 
idleness,  30  per  cent  of  the  working  year  during  which  they  have  no  opportunity 
to  earn  a  living  wage." 

The  fundamental  cause  of  irregular  employment  in  anthracite  min- 
ing has  been  "  no  market,"  according  to  the  report  quoted  above. 

"  In  other  words  the  equipment  and  labor  force  have  been  more  than  adequate 
to  produce  the  supply  which  the  market  has  been  ready  to  absorb.  ...  In  order 
to  estimate  the  probable  number  of  days  which  will  be  averaged  in  future  years,  it 
will  be  necessary  to  form  a  judgment  as  to  the  probable  future  of  the  market  in 


UNEMPLOYMENT  269 

relation  to  possible  production.  From  this  and  from  data  for  the  last  decade  it 
would  appear  that  the  market  for  anthracite  in  the  future  will  remain  in  a  state  of 
equilibrium  at  about  the  level  for  the  years  1910  and  1916,  inclusive. 

"  This  will  mean  that  the  maximum  average  days  per  year  to  be  expected  will 
be  about  242,  leaving  the  worker  to  face  unemployment  for  20  per  cent  of  the 
working  year." 

The  problem  of  car  shortage,  so  important  in  the  bituminous  industry, 
has  played  a  small  part  in  the  anthracite  industry.  Regularization, 
therefore,  depends  chiefly  on  the  even  placement  of  orders  through  the 
year. 

(c)  The  Clothing  Industry. — The  clothing  industry  has  been  and  still 
is  to  a  considerable  extent  a  seasonal  industry. 

The  manufacture  of  men's  clothing  employed  173,747  workers 
according  to  the  U.  S.  Census  of  Manufacturers,  1914.  The  manu- 
facture of  women's  clothing  employed  168,907  at  the  time  this  census  was 
taken.  There  are  ordinarily  two  busy  seasons  and  two  dull  seasons  in 
the  clothing  trade.  The  busy  seasons  extend  from  about  the  middle 
of  June  to  the  first  of  September,  and  from  the  first  of  December  to  the 
latter  part  of  February. 

The  causes  of  these  fluctuations  in  employment  conditions  of  the 
clothing  industry  are  found  in  the  seasonal  demands  by  the  retail  trade. 
Constant  variations  in  style  lead  to  caution  in  buying  until  the  market  is 
reasonably  assured  to  the  retail  merchants. 

An  attempt  towards  abolishing  the  seasonal  character  of  the  clothing 
industry  in  Cleveland  is  summarized  by  W.  J.  Mack  1  as  follows: 

"  The  distinctive  feature  of  the  situation  in  Cleveland  is  the  system  now  being 
installed  in  the  hope  of  eliminating  so  far  as  possible  this  seasonal  difficulty — 
avoiding  on  the  one  hand  the  evils  of  under-productivity  on  the  part  of  the  workers, 
and  on  the  other  hand  the  lack  of  continuity  of  employment  during  the  slack 
periods.  It  provides  that  the  union  and  the  association  shall  jointly  engage  and 
pay  industrial  engineers  who,  under  the  supervision  of  the  Impartial  Chairman, 
shall  establish  for  each  of  the  factories  fair  and  accurate  standards  of  average  pro- 
duction for  a  minimum  weekly  wage,  each  worker  to  receive  additional  pay  for 
every  unit  he  or  she  produces  in  excess  of  the  minimum  standard.  It  has  been 
further  understood  that  the  employers  will  guarantee  each  permanent  worker  at 
least  forty  weeks'  employment  and  one  week's  vacation  with  pay." 

The  chief  efforts  to  regularize  employment  conditions  in  the  clothing 
trade  may  be  outlined  as  follows: 

1.  The  elimination  of  the  sub-contract  system,  and  the  abolition  of  the  "  sweat 
shop." 

2.  Co-operation  among  manufacturers  in  setting  standards. 

1  Mack,  W.  J.,  Industrial  Peace  in  Cleveland,  The  Nation,  February  16,  1921. 


270  WASTE  IN  INDUSTRY 

3.  The  manufacture  of  plain,  conservative  models  during  the  dull  seasons. 

4.  The  scientific  analysis  of  trade  conditions  for  the  anticipation  of  market 
demands. 

5.  Strict  adherence  to  contracts  made  by  manufacturers  with  buyers. 

The  above  methods,  if  effected,  would  permit  the  manufacturer  to 
make  up  a  proportion  of  his  products  before  the  actual  orders  have 
been  placed. 

Millinery  and  Hat  Manufacture. — The  average  length  of  yearly  employ- 
ment in  the  velvet  and  felt  hat  establishments  ranges  from  8  to  10  months. 
The  rush  period  comes  during  the  summer  in  preparation  for  the  autumn 
trade.  The  dull  season  occurs  after  November.  In  women's  millinery  the 
seasons  in  flower  and  feather  factories  are  different,  the  flower  factory 
season  occurring  in  January  to  April  or  May,  the  feather  factory  season 
extending  from  August  to  December.  The  straw  hat  factories  have  a 
busy  season  of  approximately  six  months,  extending  through  the  late  fall, 
winter  and  early  spring. 

Efforts  to  maintain  steady  production  in  the  hat  industry  have  been 
made  chiefly  from  the  point  of  view  of  factory  overhead  rather  than  for 
the  purpose  of  continuously  employing  the  working  force.  Many  felt 
hat  factories  manufacture  straw  hats  in  otherwise  dull  seasons.  This, 
however,  necessitates  a  partial  reorganization  of  the  work  force  each  year. 

Seasonal  Nature  of  all  Industries. — Although  the  several  industries 
vary  greatly  in  the  degree  to  which  they  are  affected  by  seasons  it  might 
be  said  that  practically  all  industries  are  seasonal;  there  are  few  trades 
which  do  not  pass  through  dull  periods  at  regular  intervals.  The 
shoe  trade,  the  textile  industries,  the  steel  industry,  slaughtering  and 
meat  packing,  etc.,  all  have  regular  intervals  of  slack  time  as  well  as 
those  resulting  from  major  industrial  depressions. 

2.    SEASONAL    TRADES   EMPLOYING    UNSKILLED    LABOR 

(a)  Agriculture. — The.  farming  of  the  country  is  carried  on  by  local 
labor  supplemented  chiefly  by  the  casual  unskilled  labor.  It  is  with  the 
latter  class  that  the  present  survey  chiefly  has  to  deal.  An  indication  of 
the  demand  for  farm  labor  for  the  first  half  of  the  year  is  afforded  by  a 
report  made  by  the  U.  S.  Employment  Service,  1918.1 
Number  of  farm  laborers  called  for  during: 

January 98 

February 1,296 

March 8,784 

April 18,458 

May 23,081 

June 69,577 

July  1st  to  13th  inclusive 28,089 

1  U.  S.  Empoyment  Service,  Annual  Report  of  the  Director  General.  Fiscal  year 
ended  June  30,  1918. 


UNEMPLOYMENT  271 

These  figures  reflect  the  demand  for  the  country  as  a  whole.  The 
seasonal  demand  varies  with  the  section  of  the  country.  In  the  New 
England  states,  for  instance,  it  is  greatest  in  April  for  the  first  half  of  the 
year  considered,  while  in  the  winter  wheat  belt  the  peak  of  the  demand 
c^mes  in  June. 

The  greatest  single  agricultural  requirement  for  casual  labor  in  this 
country  is  found  in  the  harvesting  of  the  winter  wheat  crop.  In  1920 
the  U.  S.  Employment  Service1  directed  53,072  harvest  hands  in  the 
wheat  belt. 

"  During  a  normal  season,  harvest  should  start  in  north  central 
Oklahoma  about  June  5  to  8,  reaching  the  southern  Kansas  counties 
about  June  15  to  18;  the  central  Kansas  counties  about  10  days  later, 
and  the  north  central  and  northwestern  territory  about  July  1  to  5.  Under 
these  conditions,  it  becomes  possible  to  utilize  the  services  of  many  men, 
who  start  in  Oklahoma  in  the  southern  or  central  Kansas  counties,  and 
those  who  commence  in  southern  Kansas  finish  in  time  to  assist  in  the 
harvest  in  the  north  central  and  northwestern  districts." 

The  problem  of  efficient  use  of  casual  labor  to  supplement  local 
agricultural  labor  is  largely  one  of  distribution  through  adequate  machinery 
for  transportation  and  placement  at  points  where  labor  is  temporarily 
required.  In  the  nature  of  things  agricultural  labor  cannot  be  regular- 
ized, but  it  is  possible  to  provide  for  a  better  distribution  of  casual 
workers  and  the  temporarily  unemployed  industrials. 

(6)  Canning  and  Preserving. — The  canning  of  food  products  is  neces- 
sarily seasonal  because  it  must  be  accomplished  when  fruits  and  vege- 
tables ripen. 

The  fish  canning  industry  located  on  the  Atlantic  and  Pacific  sea- 
boards, is  intermittent  to  a  less  degree  than  fruit  and  vegetable  canning. 
Different  kinds  of  fish  are  handled  at  different  periods  of  the  year,  this 
permitting  a  long  season.  The  season  at  best  extends  over  ten  months 
of  the  year.  Midwinter  is  the  time  of  maximum  employment,  a  period 
of  idleness  occurring  in  the  spring  months.  The  canning  season  is  con- 
siderably shorter  than  the  curing  and  packing  seasons.  Much  of  the 
extra  labor  taken  on  in  rush  seasons  is  local,  and  where  possible  women 
are  employed. 

Fruit  and  berry  canning  is  largely  done  in  eastern  and  far  western 
states;  vegetable  canning  in  the  central  portions  of  the  country.  Cali- 
fornia is  the  most  important  state  in  which  fruit  and  berry  canning  is 
undertaken.  Over  55%  of  the  total  product  is  canned  within  a  maxi- 
mum of  eight  weeks.  Similar  conditions  exist  in  the  fruit  and  berry 
canning  industry  in  the  eastern  states. 

1  U.  S.  Employment  Service,  Annual  Report  of  the  Director  General.  Fiscal  year 
ended  June  30,  1920. 


272  WASTE  IN  INDUSTRY 

Fluctuations  in  employment  in  the  canning  and  preserving  industry 
for  the  country  as  a  whole  have  been  compiled  by  the  U.  S.  Census  of 
Manufactures,  1914.  The  number  employed  varied  from  27,917  on  Janu- 
ary 15  to  185,724  on  September  15.  In  the  middle  western  and  western 
states  the  greatest  number  are  employed  in  canning  in  July,  August,  and 
September,  but  in  the  eastern  states  during  August,  September  and 
October.  A  large  percentage  of  the  workers  employed  are  women. 

Efficient  adjustment  in  the  canning  of  the  various  products  as  the 
season  advances  has  been  found  effective  particularly  in  California  in 
lengthening  the  season  of  employment.  The  increased  use  of  cold  storage 
also  effects  a  steadier  employment  condition  in  the  canning  industry. 

(c)  The  Lumber  Industry. — The  total  number  of  men  employed  in  the 
United  States  in  1910  as  lumbermen,  raftsmen  and  woodchoppers  was 
reported  to  be  161,191,  by  the  U.  S.  Census.     No  recent  figures  have 
been  compiled  from  authoritative  sources  covering  the  whole  country. 
The  number  of  lumbermen,  however,  has  probably  increased  to  a  con- 
siderable extent. 

The  greater  part  of  the  lumber  cut  is  made  in  the  winter  months. 
Many  woodsmen  are  found  in  the  wheat  belt  in  summer.  Many  others 
might  be  utilized  in  other  agricultural  work.  In  winter  these  men  could 
again  be  recruited  for  the  woods. 

(d)  Dock  Labor. — The  work  of  stevedores  is  necessarily  intermittent, 
depending  on  the  amount  of  shipping  in  harbor  at  any  given  time.     To 
meet  the  emergencies  of  rush  seasons  a  large  surplus  of  labor  is  essential. 

Measures  looking  towards  regularization  of  this  work  might  be  under- 
taken similar  to  those  carried  out  by  the  U.  S.  Employment  Service  to 
meet  wartime  requirements. 

"  It  was  agreed  that  there  should  be  formed  an  elastic  labor  pool, 
and  that  the  United  States  Employment  Service  should  organize  and 
direct  the  activities  of  the  new  division,  and  that  henceforth  men  would 
shift  not  only  from  one  dock  to  another  nearby,  but  also  from  one  side  of 
Manhattan  to  the  other,  from  Hoboken  to  South  Brooklyn,  should  it  be 
found  necessary,  and,  as  one  of  the  representatives  of  the  longshore- 
men said,  from  one  port  to  another,  making  the  Atlantic  coast  one 
dock. 

"  There  were  established  in  New  York  seven  branches  of  the  Stevedores 
and  Marine  Workers'  Division,  with  the  clearing  house  for  the  labor  pool 
located  in  the  Bowling  Green  Building,  New  York  City.  Other  branches 
were  established  at  Philadelphia,  Baltimore,  Norfolk,  Newport  News, 
Charleston,  S.  C.,  Mobile,  New  Orleans,  Galveston,  Boston,  Portland, 
Buffalo,  Seattle,  and  Duluth. 

"  That  the  service  was  a  success  can  be  measured  by  the  statements 
frequently  made  that  the  port  of  New  York  increased  its  efficiency  at 


UNEMPLOYMENT  273 

least  30%,  by  the  elastic  labor  pool  for  longshoremen  and  marine  workers 
developed  by  the  Employment  Service." 

(e)  Employment  of  Casual  Labor  in  Winter. — The  fact  that  the  basic 
industries  of  the  country,  including  agricultural  and  railroad  construction 
work,  are  absolutely  dependent  upon  migratory  workers,  points  to  the 
necessity  of  solving  the  winter  unemployment  problem  of  casual  labor. 

As  emphasized  by  Pigou  l  the  winter  months  offer  fewest  employ- 
ment opportunities  for  casual  labor.  Outside  of  logging,  ice  cutting  and 
snow  shovelling  there  is  small  requirement  for  this  type  of  supplementary 
labor.  These  workers  tend  to  concentrate  in  the  large  cities,  depending 
on  odd  jobs,  on  charity,  and  sometimes  on  crime  for  a  livelihood. 

The  report  of  the  Commission  on  Industrial  Relations  outlined 2 
the  problem  of  migratory  labor  and  recommended  a  national  distribution 
agency. 

."  The  movement  of  these  migratory  workers  at  the  present  time  is  practically 
unorganized  and  unregulated.  Workmen  in  large  numbers-  go  long  distances  in 
the  hope  of  finding  employment  on  the  basis  of  a  mere  rumor,  and  frequently  find 
that  there  is  either  no  work  or  work  for  only  a  few.  At  the  same  time,  the  demand 
for  labor  in  a  given  locality  or  industry  remains  unfilled  because  the  workers  have 
failed  to  hear  of  the  opportunity.  .  .  . 

"  The  attempts  to  regulate  the  movements  of  migratory  workers  by  local  organ- 
izations have,  without  exception,  proved  failures.  This  must  necessarily  be  true 
no  matter  how  well  planned  or  well  managed  such  local  organizations  may  be. 

"  The  problem  cannot  be  handled  except  on  a  national  scale  and  by  methods 
and  machinery  which  are  proportioned  to  the  enormous  size  and  complexity  of  the 
problem." 

II.  CLIMACTERIC  UNEMPLOYMENT 

The  two  main  causes  of  climacteric  unemployment  are:  (1)  inter- 
national dislocations  resulting  from  a  great  war;  (2)  the  alternation  of 
business  expansion  and  business  depression  inherent  in  the  complicated 
modern  industrial  structure.  Remedies  suggested  for  this  are  numerous 
and  diverse. 

The  underlying  causes  of  cyclical  depressions  have  been  attributed 
to  numerous  factors,  ranging  from  crop  failures  to  sun  spots.  The 
generally  accepted  theory  seems  to  be  that  depressions  result  from  too 
rapid  trade  and  industrial  expansions.  That  they  should  be  ascribed  to 
over-production  of  commodities  at  any  given  time  has  been  repudiated 
by  economists. 

The  major  industrial  disturbances  occurring  in  this  country  in  the 
last  hundred  years  took  place  in  1837,  1873,  1893,  1907-1908,  1914-1915 

1  Pigou,  A.  C.     Unemployment.     New  York,  1914. 

2  United  States  Commission  on  Industrial  Relations,  Final  Report,  1915. 


274  WASTE  IN  INDUSTRY 

and  1919.  Unemployment  figures  for  the  country  as  a  whole  are  not 
available  for  the  earlier  periods  of  depression.  According  to  estimates 
of  Hornell  Hart 1  there  were  3,500,000  unemployed,  averaged  by  months, 
in  1908.  The  greatest  number  unemployed  in  this  year  was  4,200,000 
in  April. 

In  both  1914  and  1915  there  was  an  average  of  about  4,500,000  idle 
The  high  point  was  reached  in  January,  1915,  with  6,500,000  idle. 

Estimates  made  by  the  U.  S.  Employment  Service  and  by  the  Ameri- 
can Federation  of  Labor  place  the  number  of  unemployed  in  January  and 
February,  1921,  at  from  4,000,000  to  5,000,000. 

The  total*  amount  of  unemployment  cannot  be  attributed  solely  to 
the  respective  periods  of  depression.  The  months  which  show  highest 
unemployment  figures  are  those  of  winter  or  early  spring  when  many 
of  the  seasonal  industries  are  at  a  low  ebb.  In  a  severe  period  of  depres- 
sion, however,  it  may  be  expected  that  the  normal  average  amount  of 
unemployment  in  any  month  will  be  about  doubled. 

While  it  is  not  within  the  province  of  this  report  to  discuss  the  funda- 
mental causes  of  industrial  depressions,  some  suggestions  for  overcoming, 
at  least  in  part,  periods  of  economic  stagnation  are  repeated  here.  Ordway 
Tead  and  H.  C.  Metcalf  2  express  themselves  as  follows: 

"  One  of  the  conspicuous  things  that  happens  is  that  each  individual  com- 
peting plant  loses  sight  of  the  total  real  demand,  or  imagines  that  it  can  capture  a 
larger  proportion  of  the  demand  than  it  ever  did  before.  The  total  demand,  even 
if  known,  is  not  related  to  the  producing  capacity  of  an  entire  industry." 

A  regularization  of  this  point  could  best  be  brought  about,  according 
to  Tead  and  Metcalf,  by  the  establishment  of  national  industrial  councils 
similar  to  the  English  councils  established  by  the  Ministry  of  Recon- 
struction. Experiments  with  such  councils  have  been  made  in  the 
United  States,  notably  in  the  printing  and  electrical  trades,  and  these 
attempts  might  be  used  as  the  basis  for  further  undertakings. 

Another  suggestion  which  bears  upon  the  reduction  of  the  cyclical 
depression  involves  a  publicity  campaign  for  the  education  of  investors. 
The  too  rapid  expansion  of  any  industry  can  be  prevented  by  a  careful 
restriction  of  capitalization. 

At  present  the  country  is  not  prepared  to  apply  more  than  palliatives 
to  climacteric  unemployment,  while  the  only  permanent  remedy  lies  in 
eliminating  the  underlying  economic  causes. 

1  Hart,  Hornell,  Fluctuations    in  Unemployment  in  Cities  of  the  United  States, 
1902  to  1917.     Cincinnati,  1918. 

2  Tead,  Ordway,  and  Henry  C.  Metcalf,  Personnel   Administration,  Its  Principles 
and  Practice.     New  York.  1920. 


UNEMPLOYMENT  275 


III.  RESIDUAL  UNEMPLOYMENT 

Hornell  Hart 1  has  estimated  that  between  1902  and  1917  there  was 
never  a  period  when  less  than  a  million  wage-earners  were  out  of  work. 
The  average  proportion  unemployed  fluctuated  from  16%  of  the  total 
supply  of  possible  workers  in  1915  to  4.7%  in  1917,  but  even  then,  at  the 
climax  of  the  wartime  industrial  activity,  over  a  million  wage-earners 
were  out  of  work.  It  was  stated  2  at  the  National  Employment  Service 
Hearings  in  1919  that  unemployment  reached  its  lowest  point  for  the 
last  20  years  in  1917  and  1918.  The  reports  of  the  New  York  State  Depart- 
ment of  Labor  show,  however,  that  in  the  year  1918,  employers  called  for 
779,972  workers;  that  443,782  applied  for  employment,  and  that  183,640 
were  actually  placed.  This  leaves  a  surplus  of  160,142  applicants  who 
could  not  find  work  from  the  employment  offices,  in  spite  of  the  fact  that 
employers  requested  approximately  500,000  more  men  and  women  from 
the  offices  than  they  obtained. 

This  permanent  labor  reserve  is  largely  drawn  from  certain  definite 
groups,  chief  among  which  is  that  of  the  casual  workers.  Among  these 
the  unskilled  laborers  predominate,  although  there  is  a  certain  propor- 
tion of  skilled  men  who  through  fluctuation  of  employment,  or  changes 
in  manufacturing  methods,  or  through  their  own  defects  of  character, 
have  been  led  into  irregular  habits  of  work.  Other  groups  who  con- 
tribute to  the  residue  of  labor  are  the  mentally  and  the  physically  deficient. 

Experience  has  repeatedly  shown  that  common  laborers  are  the  first 
to  be  laid  off  in  dull  times  and  the  last  to  be  taken  on  when  business 
improves.  The  situation  revealed  by  a  survey  3  in  twelve  Rocky  Moun- 
tain and  Pacific  Coast  cities  in  June  and  July,  1914,  is  typical.  It 
showed  that  of  5,830  persons  out  of  work  the  largest  proportion,  16.8% 
were  laborers. 

According  to  the  Industrial  Relations  Commission:4 

"  The  permanently  unemployed  are  really  people  who  have  dropped  out  of  the 
ranks  of  industry,  broken  down  by  the  unsteadiness  of  employment  or  other  causes. 
Some  are  mentally  defective  or  physically  incapable  or  both.  Others  are  '  downs 
and  outs  '  who  have  lost  the  habit  of  working.  Still  others  live  by  their  wits,  by 
begging,  or  by  crime.  During  the  most  prosperous  times,  when  labor  is  in  great 
demand,  these  same  people  do  not  work." 

1  Hart,  Hornell,  Fluctuations  in  Unemployment   in  Cities  of  the   United  States, 
1902  to  1917.     Cincinnati,  1919. 

2  United  States  National  Employment  Service,  Hearings — Washington,  1919. 

3  U.  S.  Bureau  of  Labor   Statistics.     Bulletin  No.  195.     Unemployment  in  the 
United  States,  Washington,  1916. 

4  U.  S.  Commission  on  Industrial  Relations.     Final  Report,  Washington,  1916. 


276  WASTE  IN  INDUSTRY 

A  large  number  of  workers  will  refuse  employment  except  at  their 
own  trade.  The  fact  that  there  are  vacant  positions  does  not  help  the 
man  who  has  not  the  qualifications  to  fill  any  one  of  them.  Mechanical 
inventions  and  improved  methods  of  management,  however  much  they 
may  contribute  to  the  final  progress  of  our  civilization,  have  the  immediate 
effect  of  adding  very  considerably  to  the  residue  of  unemployed.  The 
resulting  difficulties  in  securing  and  holding  employment,  the  declassed 
feeling  which  the  skilled  man  experiences  when  he  can  no  longer  obtain 
a  position  worthy  of  his  training,  and  the  irregular  life  and  uncertainty  of 
earnings  tend  to  destroy  the  inclination  for  steady  work.  It  is  among 
the  unskilled  that  unemployment  is  always  most  acute,  and  all  additions 
to  this  class  make  the  problem  more  serious.  A  witness  before  the  New 
York  Commission  on  Unemployment  in  1911  testified  l  : 

"  I  have  very  many  cases  which  I  could  cite  of  men,  intelligent,  capable  fellows, 
who  have  become  virtually  tramps  because  of  their  continued  search  for  work, 
and  trying  to  readapt  or  readjust  themselves  to  changed  conditions." 

A  still  larger  proportion  of  the  casual  laborers  who  form  the  residue 
of  unemployables  have  never  received  training  for  a  definite  job.  This 
group  is  continually  re-enforced  by  incoming  immigrants,  a  large  propor- 
tion of  whom  are  qualified  to  work  only  as  common  laborers.  For  instance, 
only  14.5%  of  immigrants  entering  this  country  between  1910-1914 
and  only  16.3%  entering  in  1920  were  classified  2  as  skilled  workers. 

To  reduce  unemployment  among  casual  workers  restriction  of  immi- 
gration is  the  remedy  usually  proposed  by  the  trade  unions.  The  present 
Commissioner  of  Immigration,  and  others,  advocate  distribution  of  immi- 
grants to  work  on  the  land,  placing  them  in  small  farm  communities. 

The  excessive  turnover3  among  juvenile  workers  also  indicates  the 
difficulties  of  the  untrained.  Many  children  enter  blind  alley  occupations 
and  find  themselves  at  18  or  20  years  of  age  unqualified  for  any  position. 

Among  the  physically  incapacitated  are  the  victims  of  industrial 
accidents  and  soldiers  disabled  in  the  war.  While  these  handicapped 
workers  were  formerly  relegated  to  the  human  scrap  of  industry,  at  present 
comprehensive  efforts  for  their  vocational  rehabilitation  are  being  made 
through  co-operation  of  federal  and  state  agencies.  The  sum  of  $750,000 
was  appropriated  for  this  purpose  by  Congress  for  1920  and  $1,000,000 
for  each  of  the  three  succeeding  years.  The  minimum  allotment  to  a 
state  is  $5,000  and  each  dollar  of  federal  funds  must  be  matched  by  the 

1  New  York  Commission  on  Employers'  Liability  and  Unemployment.      Report, 
April,  1911. 

2  U.  S.  Commissioner  General  of  Immigration.    Annual  Report,  1920.      Washing- 
ton, 1920. 

'United  States.  Children's  Bureau.  No.  74.  Industrial  Instability  of  Child 
Workers.  Washington,  1920. 


UNEMPLOYMENT  277 

state.     Several  states  had  already  undertaken  reeducation  of  handicapped 
workers  previous  to  the  passage  of  the  Industrial  Rehabilitation  Act.1 

Increasing  attention  is  being  turned  toward  mental  deficiencies  as  an 
element  in  the  employment  situation.  One  labor  manager  has  estimated 
that  90%  of  turnover  is  due  to  mental  causes.  Investigation  2  of  the  record 
of  a  young  man  suffering  from  paranoid  dementia  prsecox  showed  that 
he  had  held  123  positions  with  103  firms  in  33  different  occupations  during 
a  10-year  period.  Important  as  is  their  relation  to  labor  turnover,  the 
usual  place  of  mentally  abnormal  workers  is  among  the  permanently 
unemployed. 

IV.  EMPLOYMENT  EXCHANGES— (A)  IN  THE  UNITED  STATES 

Employment  exchanges  in  the  United  States  may  be  grouped  as  fol- 
lows: (1)  public;  (2)  semi-public;  and  (3)  private.  The  first  group — 
public  employment  exchanges  in  the  United  States — has,  for  purposes 
of  discussion  in  this  report,  been  subdivided  into  (a)  Federal,  (6)  State, 
and  (c)  Municipal. 

1.  Public. — (a)  Federal. — Up  to  the  end  of  1917  there  were  no  employ- 
ment offices  in  the  United  States  organized  on  a  national  scale.  Some 
were  administered  by  the  Immigration  Department,  others  were  under 
state  control,  and  there  were  many  private  agencies.  The  unemployment 
accompanying  the  disorganization  of  business  after  the  outbreak  of  the  war 
in  Europe  led  to  the  creation  of  many  special  committees,  which  together 
with  established  philanthropic  agencies,  endeavored  to  stabilize  the  labor 
market.  When  industry  began  to  fill  war  orders  and  especially  after  the 
entry  of  the  United  States  into  the  war  and  the  conscription  for  the  army, 
the  country  experienced  a  labor  scarcity  instead  of  a  labor  surplus.  This 
labor  scarcity,  however,  was  more  apparent  than  real,  as  it  resulted  chiefly 
from  the  unregulated  methods  of  recruiting  labor  on  the  part  of  both 
government  and  employers. 

To  meet  this  emergency,  the  U.  S.  Employment  Service  was  organized 
within  the  Department  of  Labor,  and  all  employment  work  was  trans- 
ferred to  it  from  the  Bureau  of  Immigration. 

In  addition  to  the  paid  personnel  of  the  Service,  there  were  gradually 
developed  volunteer  state  advisory  boards  and  community  labor  boards 
on  which  the  federal  government,  employers,  workers  and  women  were 
represented.  These  volunteer  boards  were  effective  in  determining 
policies  and  especially  in  winning  employers  to  regard  the  Service  more 
favorably. 

1  Passed  June  26,  1920.     Public  Document  No.  236 — 66th  Congress. 

2  Powers,   Margaret  J.    The   Industrial    Cost  of  the   Psychopathic    Employee. 
Mental  Hygiene,  Oct.  1920. 


278 


WASTE  IN  INDUSTRY 


Subsequent  to  October  1,  1919,  the  employment  offices  were  under 
state  operation,  with  federal  co-operation.  A  general  view  of  its  activi- 
ties through  the  three-year  period  from  1917  to  1920  is  offered  by  the 
following  figures.1 

ACTIVITIES  OF  THE  U.  S.  EMPLOYMENT  SERVICE,  1917-1920 


Fiscal  Year 
Ending 

Help  Wanted 

Registrations 

Number 

Number 
reported 

June  30 

placed 

1918 

2,993,798 

2,381,392 

2,112,139 

1,890,593 

1919 

10,701,447 

6,166,447 

5,646,353 

4,267,350 

1920 

2,589,145 

3,165,559 

2,458,809 

2,020,252 

After  the  war  financial  support  was  practically  withdrawn,  and  the 
funds  appropriated  last  year  were  $400,000  instead  of  the  $4,600,000 
requested  of  Congress.  At  present  only  a  skeleton  service  is  maintained. 
Several  bills  are  pending  which  propose  the  reorganization  of  the  Employ- 
ment Service. 

"  A  'Junior  Division'  to  select  '  the  right  kind  of  employment  for  boys 
and  girls  entering  occupational  lif e  and  to  offer  employers  the  best  possible 
facilities  for  the  selection  of  their  junior  employees'  "  is  maintained  by 
the  U.  S.  Employment  Service.  It  is  still  in  the  organization  stage. 

From  study  of  national  employment  offices  as  operated  abroad  and 
from  observation  of  war  experience  in  the  United  States,  Professor 
Lescohier2  has  worked  out  certain  general  recommendations  which  he 
believes  should  be  embodied  in  any  new  organization  of  the  Employment 
Service.  He  holds  it  essential  that  the  Service  be  impartial,  under  a 
neutral  administration  representing  both  parties  in  industry.  For  this 
purpose  he  recommends  the  creation  of  a  National  Employment  Service 
Council.  This  Council,  Professor  Lescohier  holds,  should  receive  com- 
plaints and  suggestions,  suggest  changes  in  personnel  or  policies,  advice 
in  the  selection  of  the  Director-General  and  in  the  distribution  of  funds 
and  prepare  recommendations  to  Congress  for  the  improvement  or  devel- 
opment of  the  service.  Subordinate  to  the  National  Council  would  be 
state  and  local  advisory  councils  similar  to  those  developed  during  the  war. 

With  regard  to  financial  responsibility  for  a  national  system  of  employ- 
ment offices,  Professor  Lescohier  favors  co-operation  of  federal,  state  and 
local  governmental  units,  the  federal  government  to  pay  for  the  central 

1  United  States.    Employment  Service.      Annual  Reports  of  the  Director  General. 
Fiscal  years  ending  June  30,  1918,  1919,  1920. 

2  Lescohier,  Don  D.     The  Labor  Market.     New  York,  1919. 


UNEMPLOYMENT  279 

office  general  administrative  expenses;  at  least  one  federa^official  in  each 
state;  and  to  subsidize  the  central  state  office.  The  general  principle 
is  that  efficiency  must  be  maintained  in  the  local  offices  on  penalty  of 
losing  the  federal  subsidy.  At  the  same  time  the  state  and  local  units, 
which  are  contributing  their  share,  will  naturally  demand  a  similar  effici- 
ency from  federal  officials. 

Among  the  leading  functions  of  the  Employment  Service  should  be 
the  compilation  of  accurate  employment  statistics,  the  education  of 
employers  and  employees  in  practices  that  encourage  stability  of  employ- 
ment, the  encouragement  of  specialized  plant  employment  departments 
and  vocational  guidance  not  only  for  juveniles  but  also  for  adults.  The 
fulfilment  of  these  functions  demands  from  employment  officials  the 
widest  possible  personal  contact  with  employers,  civic  and  labor  organi- 
zations and  the  whole  economic  life  of  the  community  and  the  strictest 
impartiality  in  all  issues  between  employers  and  employees. 

Under  a  properly  administered  national  organization  of  employment 
offices  industry  would  operate  with  a  much  lower  labor  reserve,  as  the 
need  for  accumulating  local  labor  reserves  would  disappear  with  the 
better  co-ordination  of  demand  and  supply  of  labor  and  its  prompt  distri- 
bution over  larger  areas;  unemployment  and  underemployment  would 
be  reduced,  and  the  efficiency  of  the  available  workers  increased  by  their 
being  directed  to  the  positions  for  which  they  are  best  fitted. 

(6)  State  Employment  Exchanges. — Previous  to  the  world  war  a  num- 
ber of  states  had  established  systems  of  employment  exchanges,  but 
their  work  was  limited  in  scope.  Dr.  Edward  T.  Devine  1  reported  that 
the  Ohio  system  was  the  only  one  found  to  be  adequately  equipped, 
"  New  York,  Massachusetts,  Wisconsin,  and  a  few  other  states — ten  at 
the  outside — had  what  might  be  called  systems  of  free  public  employment 
bureaus.  Twenty-six  states  had  passed  laws  of  some  kind  authorizing 
their  establishment." 

At  the  beginning  of  1919,  there  were  twenty  states  which  contributed 
to  the  support  of  public  employment  offices.  Arranged  in  the  order  of  the 
size  of  their  appropriations  for  1919,  the  state  making  the  largest  appro- 
priation being  placed  first,  these  states  were  as  follows:  New  York, 
Illinois,  California,  Pennsylvania,  Ohio,  Indiana,  Massachusetts,  South 
Dakota,  New  Jersey,  Minnesota,  Michigan,  Connecticut,  Missouri, 
Colorado,  Oklahoma,  Rhode  Island,  Arizona,  Kentucky,  and  Kansas. 
The  Wisconsin  legislation  appropriated  $100,000  but  the  bill  was  not 
signed  by  the  governor.  The  largest  amount  appropriated  was  $253,000; 
the  smallest  $1,400;  the  total  amount,  $785,254.  In  1919,  New  York, 
Illinois,  Pennsylvania,  California,  and  Michigan  conducted  ten  or  more 
offices.  In  all  there  were  129. 

1  The  Survey/April  5,  1919. 


280  WASTE  IN  INDUSTRY 

In  1920,  the  financial  support  to  state  employment  offices  was 
materially  increased.  The  total  appropriations  amounted  to  nearly 
$300,000  more  than  in  1919.  The  number  of  offices  decreased  by  ten, 
consolidations  having  been  made  in  some  states  which  at  the  same  time 
increased  appropriations. 

These  offices  have  developed  the  technique  of  employment  service. 
Wisconsin,  Massachusetts,  New  York  and  Ohio  have  secured  co-ordination 
and  co-operation  of  their  various  exchanges,  so  that  men  are  transferred 
from  one  exchange  to  another.  Among  the  methods  worked  out  in 
Massachusetts  were  the  specialization  of  departments  for  handling  skilled 
and  unskilled  workers,  women  and  juveniles  respectively;  a  record 
system,  which  has  become  the  basis  of  most  public  employment  records; 
vocational  guidance;  the  use  of  interpreters  to  deal  with  aliens;  and 
co-operation  with  employment  managers. 

Criticism  of  State  Systems. — Among  the  criticisms  directed  against 
state  employment  systems  is  their  liability  to  political  control;  lack  of 
adequately  trained  personnel  due  to  shortage  of  funds;  and  inability  to 
meet  interstate  needs,  or  even  to  any  great  extent  those  within  the  state.1 

The  difficulty  of  state  offices  in  making  interstate  placement  is  two- 
fold. First,  without  a  general  employment  system,  they  lack  information. 
There  may  be  unemployed  carpenters  in  one  state  and  a  demand  for  them 
in  the  next,  but  if  employment  records  are  not  exchanged  the  two  state 
offices  are  equally  powerless  to  place  the  workers  or  supply  the  employers. 
Second,  there  is  a  natural  tendency  to  oppose  the  spending  of  state  funds 
for  placements  outside  the  state. 

Some  of  the  basic  defects  of  public  employment  offices  in  general  were 
analyzed  by  the  director  2  of  the  New  York  State  Bureau  of  Employment 
at  the  annual  meeting  of  the  American  Association  of  Public  Employ- 
ment Offices  in  1915.  His  conclusions  were  based  on  intensive  personal 
investigation  of  a  large  number  of  bureaus  and  on  the  evidence  presented 
in  a  three-day  hearing  before  the  U.  S.  Commission  on  Industrial  Rela- 
tions. Conditions  in  the  majority  of  public  employment  offices  showed, 
in  the  director's  opinion,  that  they  were  a  "  distinct  failure  "  and  "  not 
doing  the  thing  for  which  they  were  established." 

Poor  statistical  methods  were  characteristic.  In  many  offices  it  was 
customary  to  count  the  number  of  men  sent  out  as  actual  placements, 
although  in  numerous  instances  they  did  not  even  go  to  the  places 

1  United  States  National  Employment  System.     Hearings  before  the  Joint  Com- 
mittees on  Labor.     66th  Cong.,  1st.  Session,  Washington,  1919. 

2  U.  S.  Bureau  of  Labor  Statistics.      Bulletin  No.  192.    A  Report  on  the  Condition 
and  Management  of  Public  Employment  Offices  in  the  United  States,  together  with 
some  Account  of  the  Private  Employment  Agencies  of  the  Country.     Charles  E. 
Barnes.    Washington,  1916. 


UNEMPLOYMENT  281 

designated.  Generally  lack  of  clerical  help  prevented  accurate  returns 
about  the  men  sent  out.  Many  offices  did  not  get  sufficient  information 
either  about  the  requirements  of  the  jobs  or  the  qualifications  and  experi- 
ence of  the  applicants.  A  large  proportion  of  the  offices  were  found  to 
be  handling  chiefly  casual  labor.  This  practice  tends  to  keep  away 
employers  in  want  of  skilled  workers.  At  the  same  time,  workers  of  the 
better  class  avoid  the  offices  both  from  pride  and  because  few  suitable 
positions  are  available  there. 

The  general  opinion  of  the  public  employment  offices  was  discovered 
to  be  a  low  one.  Organized  labor  regarded  them  "  With  mild  contempt 
and  considerable  suspicion";  employers  knew  little  of  them  and  were 
also  inclined  to  be  suspicious  of  the  neutrality  of  their  attitude.  The 
inferior  class  of  their  clients,  the  inadequate  training  of  the  officials 
employed,  and  the  insufficient  appropriations  combined  to  lower  the 
standing  of  the  public  offices  and  to  keep  them  from  being  of  much  real 
value  in  the  labor  market.  At  the  same  time,  it  was  admitted  that  there 
were  exceptions  which  suggested  the  hope  that  other  offices  may  be 
greatly  improved  through  the  correction  of  some  of  the  defects  noted. 

(c)  Municipal  Employment  Exchanges. — In  addition  to  public  employ- 
ment bureaus  managed  by  the  federal  and  state  authorities,  a  very 
considerable  number  are  carried  on  by  cities.  In  some  instances  the 
municipality  works  in  co-operation  with  the  federal  service,  the  state, 
and  occasionally  with  some  private  organization.  In  general,  the 
characterizations  of  public  employment  offices  which  have  been  made  of 
the  state  bureaus  are  also  applicable  to  those  under  municipal  authority. 

2.  Semi-Public. — The  second  group  of  employment  exchanges  in  the 
United  States  to  be  considered  are  the  semi-public,  for  example,  the 
philanthropic  societies  making  the  placement  of  workers  a  part  of  their 
activities.     Organizations  like  the  Y.M.C.A.,  the  Y.W.C.A.,  the  Knights 
of  Columbus,  and  some  of  the  Jewish  societies  have  done  much  in  this 
direction.     Their  service  is  either  free  or  at  least  the  fees  are  nominal  in 
amount.    Their  effectiveness,  however,  is  limited  to  comparatively  small 
groups,  as  some  workers  avoid  them  because  they  regard  the  service  as 
a  charity,  and  because  of  religious  and  other  reasons. 

The  bureaus  maintained  by  universities,  colleges  and  schools,  which 
usually  aim  to  take  care  of  only  their  own  graduates,  also  perform  only  a 
limited  and  specialized  service. 

3.  Private. — Private  agencies  comprise  the  third  group  of  employ- 
ment exchanges  in  the  United  States.     In  this  report  three  types  of 
private  employment  agencies  are  discussed:    (a)  commercial  employment 
agencies,  (6)  employers'  associations'  employment  bureaus,  and  (c)  trade 
union  employment  bureaus. 

(a)  Commercial   Employment   Agencies. — There   were   between   4,000 


282  WASTE  IN  INDUSTRY 

and  5,000  commercial  employment  agencies 1  in  the  United  States  at  the 
beginning  of  1919.  No  figures  are  available  as  to  the  total  annual  profits 
of  these  fee-charging  agencies.  Charles  B.  Barnes,  in  the  New  York 
Tribune  of  February  6,  1919,  estimated  that  employment  offices  in  New 
York  City  numbering  about  600  collected  $2,500,000  yearly.  The  manager 
of  a  private  agency  in  Minneapolis  estimated  that  his  annual  collections 
amounted  to  $500,000. 

The  basic  defect  in  commercial  employment  agencies  as  a  means  of 
reducing  unemployment  is  that  their  profits  depend  on  the  number,  not 
the  permanence,  of  the  placements  made.  Hence  it  pays  the  agency 
to  entice  men  from  one  place  to  another  and  to  stimulate  turnover  rather 
than  to  reduce  it.2 

Much  evidence  has  been  collected  to  prove  the  abuses  carried  on  by 
private  agencies.  Typical  practices  are  the  misrepresentation  of  wages 
and  working  conditions,  extortionate  fees,  splitting  fees  with  foremen 
to  secure  frequent  discharges  and  opportunities  for  new  placements,  and 
the  shipment  of  men  to  distant  points  where  no  jobs  are  really  available. 
The  New  York  City  Commission  of  Licenses  investigated  1,932  complaints 
against  commercial  employment  agencies  in  one  year,3  ordered  the 
refunding  of  over  $3,000  to  clients  of  these  bureaus,  revoked  13  licenses, 
and  secured  the  conviction  of  9  employment  agents.  Such  a  record  is  an 
index  of  the  abuses  which  obtain  in  the  country  at  large. 

With  regard  to  the  amount  demanded  for  placements,  the  following 
statement,  made  specifically  concerning  commercial  agencies  in  Minne- 
sota, has  been  found  descriptive  of  methods  in  a  very  considerable  pro- 
portion of  the  private  fee-charging  bureaus :  4 

"  The  lack  of  any  standard  of  legal  fees  to  be  charged  enables  the  agency  to  fix 
the  fee  according  to  conditions  of  the  labor  market  and  in  individual  cases  according 
to  the  intelligence  of  the  man  seeking  the  job.  When  many  men  are  out  of  work, 
and  employment  scarce,  a  high  fee  is  charged.  When  men  are  scarce  and  jobs 
plentiful  they  charge  a  low  fee.  Even  in  times  when  work  is  plentiful,  exorbitant 
fees  are  charged  if  the  applicant  is  unfamiliar  with  our  language,  feeble-minded, 
intoxicated,  or  otherwise  unable  to  protect  his  rights." 

The  abuses  have  resulted  in  restrictive  legislation  in  a  majority  of 
the  states.  The  laws  generally  require  the  licensing  of  commercial 
employment  agencies,  frequently  regulate  their  location,  and  often  fix 
the  maximum  which  may  be  charged  as  fee. 

1  United  States  National  Employment  System.     Hearings. — Washington,  1919. 

2  Lescohier,  Don  D.     A  Clearing  House  for  Labor.      The  Atlantic  Monthly,  June, 
1918. 

3  New  York  City.    Report  of  the  Commissioner  of  Licenses,  1913. 

4  United  States  National  Employment  System.    Hearings — Washington,  1919 


UNEMPLOYMENT  283 

Whatever  the  provisions  of  state  law  for  the  regulation  of  employ- 
ment agencies,  these  restrictions  have  no  force  on  interstate  business  in 
which  the  abuses  occur  most  frequently.1 

"  The  almost  unanimous  testimony  of  investigators  and  public  officials,  how- 
ever, is  that  these  provisions  (legal  restrictions)  have  not  been  successful  in  stamp- 
ing out  the  abuses  of  private  offices,  and  the  result  has  been  a  widespread  move- 
ment for  the  abolition  of  such  offices  altogether." 

A  referendum  in  Washington  in  1914  resulted  in  prohibiting  the  collec- 
tion of  fees  from  workers  by  employment  agents  on  the  ground  that  the 
system  frequently  resulted  "  in  their  becoming  the  victims  of  imposition 
and  extortion  and  is  therefore  detrimental  to  the  welfare  of  the  state." 
In  1917  this  measure  was  declared  2  unconstitutional  by  the  United  States 
Supreme  Court  on  the  ground  that  it  violated  the  fourteenth  amend- 
ment. In  Wisconsin,  a  law  passed  in  1919  gives  the  State  Industrial 
Commission  power  to  refuse  licenses  to  commercial  agencies  at  its  dis- 
cretion. Several  foreign  countries  have  taken  steps  to  restrict  or  suppress 
private  agencies,  especially  where  public  employment  agencies  are 
maintained. 

(6)  Employers'  Associations'  Employment  Bureaus. — Dissatisfaction 
with  existing  employment  agencies,  a  disposition  to  centralize  and  organ- 
ize employment,  and  perhaps  in  some  instances  the  desire  to  control  the 
type  of  labor  employed  have  led  to  the  establishment  of  employment 
offices  by  employers'  associations  and  chambers  of  commerce.  While  in 
many  instances  these  offices  serve  only  the  members,  this  is  not  invariably 
the  case.  The  offices  are  often  well  organized  and  have  performed  a  very 
appreciable  service  for  their  particular  clients.  The  number  of  bureaus 
maintained  by  such  organizations  is  considerable.  For  instance,  the 
National  Metal  Trades  Association  has  fourteen  employment  branches. 
In  some  instances  employment  bureaus  are  managed  in  co-operation  with 
local  employers'  organizations. 

In  contrast  to  privately  managed  bureaus,  no  fee  is  charged  either 
employer  or  applicant.  The  employers  benefit  by  the  careful  rating  of 
applicants  based  on  an  examination  of  their  qualifications.  This  saves 
the  employer  the  investigation  of  references  and  insures  his  receiving 
exactly  the  kind  and  grade  of  workman  he  requires.  The  worker,  on  his 
part,  has  better  opportunities  to  secure  work  with  much  less  expenditure 
of  time  and  energy  than  if  he  had  to  search  from  one  factory  to  another. 

Lescohier,  to  be  sure,  maintains3  that  "workmen  in  general  will 
not  patronize  an  office  maintained  by  employers."  They  are  afraid 

1  Commons  and  Andrews,  Principles  of  Labor  Legislation.     New  York,  1920. 

2  Adams  v.  Tanner,  244  U.  S.  590,  37  Sup.  Ct.  662  (1917). 

3  Lescohier.  Don  D.,  The  Labor  Market.     New  York,  1919. 


284  WASTE  IN  INDUSTRY 

that  it  will  be  used  "  for  blacklisting,  breaking  strikes,  and  beating  down 
wages."  This  belief,  he  holds,  makes  the  field  of  usefulness  for  offices 
maintained  by  groups  of  employers  "  very  limited."  It  is  probable  that 
few  trade  unionists  are  willing  to  register.  The  experience  of  some  such 
bureaus  indicates,  however,  that  a  considerable  number  of  workers  do 
make  use  of  their  facilities. 

For  instance,  in  a  typical  year  just  before  the  war  the  Metal  Trades' 
bureaus  in  Indianapolis  registered1  8,230  applicants,  of  which  3,659 
had  previously  applied,  1,736  were  new  applicants,  while  2,835  additional 
applications  were  received  at  the  shops  through  members  who  secured 
and  forwarded  them  to  the  bureaus.  During  this  same  12-month  period 
5,174  employees  were  reported  hired  by  members,  of  whom  3,679  were 
old  applicants  and  the  remainder  new  ones  who  had  registered  for  the 
first  time.  The  total  registration  of  the  two  bureaus  maintained  in 
Indianapolis  included  from  50,000  to  60,000  names,  comprising  many 
hundred  of  occupations,  trades  and  specialties  grading  from  executive 
positions  to  the  better  class  of  common  labor. 

How  far  employers  make  use  of  these  bureaus  to  the  exclusion  of  other 
sources  of  labor  supply  is  not  certain.  Experience  in  Indianapolis 
indicated  that  some  members  of  the  employers'  association  hire  practically 
all  their  workers  through  the  bureaus,  one  stating  that  in  a  given  period 
only  5  out  of  1,200  were  secured  elsewhere.  The  secretary  estimated 
that  in  general  from  a  third  to  one-half  of  the  total  employed  by  members 
were  secured  through  the  employment  bureaus. 

The  general  inquiries  made  of  the  applicants  at  bureaus  maintained 
by  the  National  Metal  Trades  Association  are  described  as  follows: 

"  These  bureaus  require  each  applicant  to  give  the  name  of  his  last  employer, 
together  with  two  additional  such  references,  his  age,  occupation,  experience, 
whether  married  or  single,  and  wages  wanted.  He  is  not  asked  as  to  his  union 
affiliations,  although  it  is  sometimes  advantageous  that  this  information  be  had, 
because  it  is  a  waste  of  the  applicant's  time  to  send  a  union  man  to  a  non-union  job, 
or  a  non-union  man  to  a  union  job.  .  .  .  Neither  do  these  bureaus  ever  place  men 
in  strike  jobs,  under  false  pretenses.  The  applicant  is  invariably  fully  advised  and 
left  to  his  own  judgment  and  pleasure  in  the  matter.  Nor  is  the  attempt  ever 
made  to  replace  strikers  with  other  men  where  it  is  evident  there  is  a  likelihood  of 
their  soon  being  thrown  out  of  work  through  re-employment  of  the  strikers. 

"  The  references  of  each  applicant  as  to  his  skill,  productive  ability,  and  general 
character  of  service  are  fully  investigated." 

In  addition  to  its  primary  function  as  a  free  employment  office,  the 
Des  Moines  bureau  investigates  complaints  of  employees  and  secures 
from  workers  their  reasons  for  quitting  and  also  for  refusing  positions  for 
which  they  are  qualified. 

1 U.  S.  Bureau  of  Labor  Statistics.     Bulletin  No.  192. 


UNEMPLOYMENT  285 

The  knowledge  acquired  in  this  way  enables  the  bureau  to  adjust  many 
cases  satisfactorily  to  both  parties.  Sometimes  a  straightforward  talk 
with  the  worker  shows  him  the  error  of  his  opinion;  in  other  instances, 
the  bureau  takes  up  the  matter  with  the  employer,  especially  when  the 
dissatisfaction  refers  to  supervision,  hours,  working  conditions,  or  wages. 

(c)  Trade  Union  Employment  Bureaus. — The  limitations  of  trade 
union  employment  bureaus  are  somewhat  similar  to  those  of  offices 
maintained  by  employers'  associations  and  chambers  of  commerce.  Just 
as  some  of  the  workers  will  not  use  the  employers'  offices,  so  a  large  pro- 
portion of  the  employers  will  not  apply  to  the  trade  union  employment 
bureaus  for  workers.  Nevertheless,  a  very  large  proportion  of  the  trade 
unions  make  some  organized  effort  to  place  their  members  in  employment. 
The  state  of  development  and  the  efficiency  of  these  agencies  varies  from 
one  craft  to  another.  In  practically  every  organized  trade,  however, 
there  are  some  local  unions  which  provide  for  an  official,  usually  the 
business  agent,  who  gives  his  whole  time  to  employment  work. 

This  practice  is  most  common  in  the  building  trades  because  of  the 
frequent  changes  from  one  job  to  another.  The  Ladies  Garment  Workers, 
the  United  Garment  Workers,  the  Lithographers  and  the  Cigarmakers 
require  their  local  unions  to  "  establish  labor  bureaus  for  the  purpose  of 
designating  work  to  the  unemployed."  In  general,  the  local  unions  must 
themselves  take  the  initiative,  although  in  a  few  cases  the  national  unions 
help  to  pay  expenses.  The  Machinists,  the  Pattern  Makers,  Molders, 
Teamsters,  Metal  Polishers,  Brass  Workers  and  others  have  furnished 
financial  aid  either  regularly  or  occasionally.  As  the  expenditure  for  a 
business  agent  amounts  to  about  $2,000  a  year,  only  large  local  unions  can 
afford  the  full  time  of  such  an  official. 

The  business  agent  keeps  in  touch  with  developments  of  his  trade 
so  that  he  may  know  where  work  is  to  be  had  and  the  chances  of  securing 
employment  for  the  members  of  his  union.  He  visits  employers  and  fore- 
men, consults  members  at  their  places  of  employment  and  follows  the 
newspaper  advertisements.  An  inconsiderable  number  of  closed  shop 
unions  require  employers  to  secure  workers  through  the  union.  The  union 
business  agent  does  not  await  applications  of  workers,  but  often  solicits 
them  from  employers,  who  are  notified  that  telephone  requests  in  regular 
office  hours  will  meet  with  immediate  attention.  As  members  who  are 
out  of  work  generally  congregate  at  union  headquarters,  the  promptness 
of  the  service  is  a  convenience  which  attracts  some  employers,  especially 
in  emergencies.  Another  advantage  arises  from  the  ability  of  the  business 
agent,  through  personal  knowledge  of  men  and  work,  to  select  the  best 
worker  for  the  place. 

Where  a  full  time  business  agent  cannot  be  employed,  the  secretary 
or  president  of  the  local  union  receives  applications  from  employers, 


286  WASTE  IN  INDUSTRY 

and  confers  with  unemployed  members  in  his  spare  time.  In  some  trades 
a  shop  steward  is  appointed  for  each  establishment  where  union  men  are 
at  work,  one  of  whose  duties  is  to  find  out  opportunities  for  employment 
and  to  report  them  at  regular  meetings  of  the  local  union.  Since  most 
labor  organizations  emphasize  that  their  members  shall  assist  one  another 
in  obtaining  work,  much  information  regarding  unfilled  positions  is  reported 
by  individuals  at  union  meetings  or  passed  around  among  union  men. 

Comparatively  few  unions  have  attempted  to  systematize  the  distri- 
bution of  employment  on  more  than  a  local  scale.  Among  these  which 
have  established  national  employment  bureaus  to  serve  all  their  members 
are  the  Granite  Cutters,  Glass  Bottle  Blowers,  Flint  Glass  Workers, 
Lithographers,  Photo-Engravers,  Potters  and  Pattern  Makers.  A  num- 
ber of  other  unions  have  maintained  central  employment  offices  but  have 
subsequently  discontinued  them.  The  general  system  is  that  the  local 
unions  report  weekly  to  national  headquarters  the  number  of  members 
employed,  the  number  unemployed,  and  give  detailed  descriptions  of  the 
opportunities  for  employment.  In  most  cases  the  general  secretary  then 
notifies  the  unemployed  member  nearest  the  possible  job.  If  work  is 
not  found  directly  in  that  way,  the  secretary  proceeds  to  circularize  the 
trade.  The  Pattern  Makers  classify  these  weekly  reports  and  distribute 
them  among  the  local  unions,  but  they  also  deal  directly  with  unemployed 
members  and  with  employers.  The  Granite  Cutters  urge  their  unem- 
ployed members  to  telegraph  or  write  the  employer  before  moving,  in 
order  to  avoid  disappointment.  In  the  Photo-Engravers'  Union  no  one 
is  allowed  to  accept  a  job  without  notifying  the  local  secretary,  thus 
preventing  injustice  to  local  members. 

Much  information  regarding  employment  opportunities  is  published 
in  the  trade  union  journals.  The  state  of  the  trade,  whether  good,  fair 
or  dull,  and  the  number  of  members  employed  and  unemployed  are 
reported  by  all  local  secretaries  in  a  large  number  of  these  publications. 
Several  organizations  publish  addresses  of  employers  who  maintain  union 
shops,  to  which  members  may  apply  individually  for  employment. 

State  and  district  building  trades  councils  often  issue  periodic  bulletins 
regarding  trade  conditions  and  local  opportunities  for  work.  Some 
district  councils,  such  as  the  New  England  Typographical  Union  and  the 
Indiana  Typographical  Conference,  support  employment  offices;  and 
in  certain  instances  a  number  of  local  unions  have  combined  to  support 
such  bureaus. 

Distribution  of  unemployed  workers  has  been  facilitated  by  some 
unions  through  the  payment  of  loans  to  furnish  transportation  expenses 
to  members  in  search  of  work.  At  one  time  or  another  this  system  has 
been  in  use  among  the  Cigar  Makers,  Flint  Glass  Makers,  Granite  Cutters, 
Leather  Workers  on  Horse  Goods,  Lithographers,  Machinists,  Typog- 


UNEMPLOYMENT 


287 


raphers,  and  White  Rats.  In  some  years  the  sum  expended  for  this 
purpose  by  unions  affiliated  with  the  American  Federation  of  Labor 
amounted  to  $70,000.  On  the  whole,  the  plan  has  not  been  successful 
and  has  been  discontinued  by  all  unions  except  the  Cigar  Makers  and 
Typographers.  Its  failure  was  due  to  the  inefficiency  of  local  secretaries 
who  did  not  make  proper  investigation  as  to  the  need  for  traveling,  to 
the  granting  of  unauthorized  loans,  and  to  the  difficulties  in  securing  their 
repayment.  Moreover,  through  jealousy  among  local  unions,  hindrances 
were  often  put  in  the  way  of  the  movement  of  workers  from  one  city  to 
another. 

IV.  EMPLOYMENT  EXCHANGES— (B)  FOREIGN 

1.  Great  Britain. — Previous  to  the  establishment  of  the  United  States 
Employment  Service  as  a  wartime  measure  for  distributing  labor,  other 
countries  tried  out  labor  exchanges  of  nation-wide  scope.  By  a  law 
passed  in  1909,  Great  Britain  provided  for  a  system  of  exchanges 1 
administered  by  the  Board  of  Trade.  Since  the  Board  of  Trade  deals 
with  business  as  well  as  with  labor  affairs,  the  exchanges  were  placed 
under  a  jurisdiction  in  which  both  employers  and  workers  are  represented. 
When  the  Ministry  of  Labour  was  formed,  it  took  over  the  exchanges. 

The  main  objects  of  the  Labour  Exchanges  Act  was  to  bring  together 
employers  and  employees,  to  assist  especially  unorganized  and  casual 
workers  in  finding  employment;  to  administer  the  system  of  unemploy- 
ment insurance  which  was  introduced  at  the  same  time,  and  to  enable 
the  government  to  measure  unemployment  and  make  provisions 
accordingly. 

On  March  31,  1910,  214  labor  exchanges  were  open,  with  a  staff 
numbering  528,  of  whom  425  were  working  in  the  exchanges,  75  at  the 
divisional  offices  and  28  at  headquarters.  At  the  beginning  of  June, 
1920,  there  were  395  employment  exchanges  and  1,049  branch  offices, 
with  a  staff  of  12,631,  of  whom  8,484  worked  in  exchanges  and  branch 
offices,  1,330  at  the  divisional  offices,  974  at  headquarters  and  1,843  at 
the  central  claims  and  records  office  for  unemployment  insurance.  During 
the  same  period  the  activities  and  cost  of  the  employment  exchanges 
increased  as  follows: 


Year 

Individuals 
applying  for  work 

Individuals 
found  work 

Aggregate  cost 
for  financial  year 

1913-14  Average. 
1915-18        "      
1919  
1920  (six  months)  

1,930,069 
2,636,643 
4,774,011 
1,234,241 

713,350 
1,261,217 
1,111,847 
445,806 

£766,873 
1,201,873 
3,616,140 

1  Great  Britain.     Ministry  of  Labour, 
the  Work  of  the  Employment  Exchanges. 


Report  of  the  Committee  of  Enquiry  into 
London,  1920. 


288  WASTE  IN  INDUSTRY 

The  estimated  annual  cost  in  a  normal  year,  according  to  the  Minister  of 
Labour,  is  £2,200,000.  A  portion  of  this  expenditure  is  chargeable  to 
unemployment  insurance  administration,  which  in  the  year  1919-1920, 
for  instance,  cost  £458,663. 

The  exchanges  have  served  chiefly  the  unskilled  and  the  unorganized. 
Nevertheless,  organized  labor  coming  under  the  unemployment  insurance 
acts  has  made  considerable  use  of  the  exchanges.  Records  for  the  first 
6  months  of  1920  show  that  the  exchanges  were  most  used  by  the  building 
trades,  the  engineering  and  iron  founding  industries,  by  employers  of 
general  labor  and  by  the  transport  industries.  Domestic  service  accounted 
for  two-thirds  of  the  female  placements  and  for  24.7%  of  all  placements, 
engineering  and  iron  for  13%,  building  9.5%  and  general  labor  9.3% 
of  all  placements. 

In  1917,  local  employment  committees  were  established  in  connection 
with  the  employment  exchanges,  and  usually  consisted  of  representatives 
of  the  employers  and  workers  in  equal  numbers,  with  a  chairman  appointed 
by  the  employment  department.  Their  function  was  to  advise  and 
assist  in  the  work  of  the  exchanges.  In  1920  there  were  302  local  employ- 
ment committees,  with  7,158  members;  and  246  women's  subcom- 
mittees with  1,700  members. 

Since  the  war  the  exchanges  have  administered  out-of-work  donations 
and  the  placement  of  ex-service  men.  Each  employment  exchange  has 
a  department  for  juvenile  employment.  There  are  also  245  juvenile 
employment  committees  co-operating  with  the  exchanges. 

A  committee  of  inquiry,  which  investigated  the  whole  British  employ- 
ment system  last  year,  summarized  various  criticisms  directed  against 
it  and  offered  recommendations,  but  concluded  that  the  exchanges  must 
be  retained  as  "a  necessary  corollary  to  the  state  system  of  unemploy- 
ment insurance."  A  minority  report  held  that  the -exchanges  had  largely 
failed  as  placing  agencies,  and  recommended  efforts  to  cut  expenses  and 
reliance  upon  trade  unionists  to  place  their  members  in  the  highly 
organized  trades. 

2.  Canada. — The  Canadian  government  organized  a  national  employ- 
ment service  in  1918.  It  operates  the  central  office  and  clearing  house 
and  subsidizes  the  provincial  government  office  systems.  Some  90  free 
employment  offices  were  established  throughout  Canada  in  all  cities, 
beginning  in  March,  1919.  A  contract  is  entered  into  between  the 
Dominion  government  and  the  provincial  governments  which  requires 
each  province  to  maintain  a  provincial  clearing  house  and  to  co-operate 
with  the  other  provinces  and  with  the  Dominion  in  shifting  labor  from 
one  province  to  another.  Expenses  are  shared  equally  by  the  Dominion 
government  and  the  provinces.  The  Canadian  government 1  appro- 
1  United  States  Monthly  Labor  Review,  October  1918;  February,  1919. 


UNEMPLOYMENT  289 

priated  $50,000  for  the  fiscal  year  1918-1919;  $100,000  for  1919-1920; 
and  $150,000  for  1920-1921  and  for  each  year  thereafter. 

A  National  Advisory  Council,  which  meets  once  or  twice  a  year  and 
determines  the  general  policies  of  the  service,  is  composed  of  the  super- 
intendents of  the  Provincial  Employment  Office  systems,  representatives 
of  the  Canadian  Manufacturers'  Association  and  the  lumbering  and  mining 
interests,  of  the  Canadian  Trades  and  Labour  Congress,  the  Railway 
Board,  the  Railway  Brotherhoods,  the  Council  of  Agriculture,  the 
Department  of  Labour,  and  certain  women's  organizations.  Each  province 
has  a  provincial  advisory  council  composed  in  equal  numbers  of  repre- 
sentatives of  employers  and  employees.  Local  advisory  boards  are 
attached  to  the  local  offices. 

During  the  first  15  months  after  the  employment  service  was  estab- 
lished, over  600,000  persons  were  placed  in  positions,  without  cost  to  the 
employer  and  workman,  and  at  a  cost  to  the  government  of  less  than  one- 
half  the  amount  per  person  formerly  paid  by  the  individual  as  commis- 
sion to  the  private  employment  agent.  Five  provinces  have,  by  legis- 
lation, abolished  private  employment  agencies  and  another  has  this 
under  consideration.  Others  have  substantially  reduced  the  number  cf 
licenses  issued  to  them.  A  recent  resolution  by  the  executive  of  the 
Employment  Service  Council  urges  the  Ontario  and  Quebec  govern- 
ment to  abolish  private  employment  offices. 

Offices  in  each  province  report  to  a  provincial  superintendent  and  a 
telegraphic  synopsis  of  labor  supply  and  requirements  is  sent  daily  to  the 
federal  clearing  house.  By  this  clearing  house  system  a  surplus  supply 
of  labor  in  one  locality  or  province  can  readily  be  transferred  to  another 
where  it  is  in  demand.  Without  this  connecting  link  unemployed  labor 
might  exist  in  one  locality  and  a  demand  for  labor  in  another,  without 
either  the  unemployed  workman  or  the  employer  desiring  labor  knowing 
where  their  needs  could  be  met.  Special  rates  are  in  effect  whereby  a 
workman  sent  to  employment  over  a  hundred  miles  distant  travels  at 
reduced  rates  on  railways,  on  presentation  of  a  certificate  from  a  govern- 
ment employment  office,  showing  destination,  and  indicating  that  the 
bearer  is  sent  by  the  employment  office.  More  than  30,000  men  have 
been  placed  in  employment  at  distant  points  who  could  not  have  been 
provided  with  employment  within  the  territory  served  by  an  individual 
office.  This  does  not  include  the  anual  flow  of  harvest  labor  from  Eastern 
Canada  to  the  Western  prairies. 

Under  arrangements  with  the  railway  companies  for  special  trains 
at  reduced  rates  to  carry  harvest  workers,  the  employment  offices  are 
able  to  control  the  supply  and  distribution  of  harvest  hands. 

At  the  end  of  last  winter  representatives  of  the  Employment  Service 
were  placed  in  lumber  camps  and  when  the  workers  were  paid  off  by  the 


290  WASTE  IN  INDUSTRY 

lumber  companies,  they  obtained  jobs  on  farms  and  in  other  industries 
from  the  representatives  of  the  Employment  Service  in  the  camp,  and 
were  then  able  to  go  directly  to  the  next  job. 

Much  skilled  labor  of  a  particular  kind  which  employers  have  asked 
to  import  from  Europe  or  elsewhere,  has  been  located  in  Canada  and 
supplied  locally  through  the  clearing  house  service.  During  1920  appli- 
cations to  import  some  5,000  skilled  workers  of  various  sorts,  under  con- 
tract, were  received  by  the  Immigration  Department  from  employers, 
who  could  not  obtain  the  labor  required  locally.  The  Immigration 
Department  first  refers  such  requests  to  the  Department  of  Labour,  and 
importation  is  authorized  only  when  requirements  cannot  be  filled  in 
Canada.  As  a  result,  only  in  770  cases  was  it  necessary  to  go  outside  of 
Canada  to  fill  the  requirements. 

During  the  winter  of  1919-1920  the  Dominion  government  rendered 
aid  by  way  of  cash  gratuities  to  unemployed  returned  soldiers,  but  they 
were  required  to  register  at  one  of  the  90  employment  offices  and  were 
entitled  to  aid  only  on  presentation  of  a  certificate  that  employment 
was  unobtainable.  It  was  estimated  that  $45,000,000  would  be  necessary 
to  meet  this  situation  but,  largely  owing  to  this  precautionary  measure 
against  abuse,  the  amount  actually  disbursed  was  less  than  $5,000,000. 

In  the  present  unemployment  crisis  when  emergency  relief  is  neces- 
sary, the  Dominion  government  pays  one-third  of  the  monej^  disbursed, 
provided  relief  is  given,  on  presentation  of  a  certificate  from  the  employ- 
ment service  showing  that  the  bearer  applied  for,  but  could  not  be  given, 
employment.  The  Purchasing  Commission,  which  supervises  the  buying 
of  government  supplies,  co-operates  with  the  Director  of  the  Employment 
Service,  and  places  orders  in  slack  industries  where  employment  is  most 
needed. 

The  junior  employment  division 1  of  the  Employment  Service  Branch 
of  the  Department  of  Labour  was  first  organized  last  spring  and  so  far  its 
functions  have  been  largely  advisory.  It  has  already  completed  a  survey, 
however,  of  employment  of  juvenile  workers  in  Winnipeg  to  which  over 
1,400  industrial  establishments  contributed  information  regarding  the 
processes  within  various  industries  and  the  necessary  qualifications  of 
young  workers  for  particular  occupations. 

The  aims  of  the  junior  employment  division  are: 

(1)  To  refer  back  to  school  every  boy  or  girl  not  yet  ready  for 
employment; 

(2)  To  know  the  prospective  worker  through  his  physical,  mental 
and  social  records  in  order  to  become  acquainted  with  his  special  ability, 
adaptability,    inclination    and    ambition;     to    know    the    opportunities 
afforded  by  industry,  the  requirements  and  character  of  each  position 

1  Canada.    Labour  Gazette,  December,  1920. 


UNEMPLOYMENT  291 

offered,  and  by  means  of  this  knowledge  of  the  worker  and  of  the  position 
offered,  to  refer  intelligently  the  worker  to  the  job; 

(3)  To  assist  the  young  worker  by  means  of  "  follow-up  "  work  so 
that  by  taking  advantage  of  the  educational  resources  and  the  facilities 
for  suitable  recreation,  he  may  develop  greater  efficiency  in  his  work; 
and  to  continue  with  further  care  until  he  becomes  able  to  mark  out  for 
himself  his  own  progress  in  the  field  of  industry. 

In  addition  to  making  an  industrial  survey  in  order  to  discover  indus- 
trial opportunities,  full  information  regarding  each  child  will  be  obtained 
by  the  placement  officer  through  contact  and '  co-operation  with  parents, 
teachers  and  officers  of  organizations  dealing  with  children.  At  a  later 
stage  it  is  planned  that  physical  and  mental  tests  of  each  child  shall 
contribute  to  the  knowledge  necessary  for  his  proper  placement.  It  is 
advised  that  a  junior  advisory  council  be  organized  wherever  a  junior 
placement  office  is  established. 

3.  Italy. — The  complete  prohibition  of  commercial  employment 
exchanges,  the  subvention  by  government  funds  of  approved  employment 
offices  and  the  compulsory  use  of  these  government  controlled  agencies 
are  stipulations  of  the  Italian  legislative  decree  1  of  October  19,  1919, 
under  which  the  present  system  of  employment  exchanges  is  operating. 
From  the  creation  of  the  employment  exchanges  at  the  end  of  October, 
1919,  to  the  end  of  April,  1920,  150,238  persons  were  placed  in  employment 
and  431,900  lire  had  been  expended  in  government  subventions. 

Government-aided  Exchanges. — Four  types  of  employment  exchanges 
are  approved  by  the  government  and  eligible  for  financial  aid  from  the 
government. 

(a)  Those  established  by  the  provinces  or  communes. 

(b)  Those  established  by  mutual  agreement  between  employers'  and 
workers'  organizations. 

(c)  Those  depending  only  on  a  workers'  or  on  an  employers'  organi- 
zation and  recognized  by  the  other  party  either  by  an  agreement  or  only 
in  fact. 

(d)  Those  founded  by  charitable  or  other  institutions. 

All  four  types  of  employment  exchanges  must  be  carried  on  in  accord- 
ance with  the  rules  of  a  license  obtained  from  the  Ministry  of  Labour. 
Except  the  offices  managed  by  workers'  or  employers'  organizations, 
all  must  be  operated  by  joint  Committees  representing  employers  and 
workers.  The  Committees  are  elected  by  the  organizations  concerned 
under  a  chairman  agreed  upon  by  both  parties. 

4.  Other  Foreign  Countries. — In  a  number  of  other  countries    employ- 
ment offices,  national,  state,  or  municipal,  were  established  at  public 

1  Goverment  Action  in  Dealing  with  Unemployment  in  Italy.  International 
Labor  Office.  Geneva,  1920. 


292 


WASTE  IN  INDUSTRY 


expense  before  the  Great  War.     Post  war  conditions  have  demanded  their 
expansion  and  additional  machinery  to  meet  the  growth  of  unemployment. 

EMPLOYMENT  EXCHANGES  IN  FOREIGN  COUNTRIES 


Date 
Established 

Argentina  
Brazil  

1913 

Canada 

1918 

Cuba 

Denmark  

1913 

France     

1911 

Germany  

1914 

Great  Britain  

1909 

Hungary  

1916 

Italy 

1919 

Netherlands 

1916 

New  Zealand                  .    . 

1891 

Norway  .                   

1906 

Sweden  

1906 

Switzerland  
Union  of  South  Africa  

1910 

V.  PUBLIC  WORKS 

One  of  the  oldest  and  most  regularly  recurring  proposals  for  unem- 
ployment relief  is  to  carry  on  public  works.  These  are  of  two  types: 
emergency  work  created  to  absorb  the  surplus  labor,  and  necessary  public 
work  distributed  over  a  year  or  a  period  of  years  so  as  to  coincide  with 
slack  seasons  in  private  industry. 

Emergency  Public  Work. — In  this  country  over  100  cities  carried  on 
emergency  public  work l  in  1914-1915  and  employed  thousands  of  men 
in  sewer,  street  and  road  making,  quarrying,  forestry,  drainage,  water- 
works, building  and  painting.  Usually  these  men  were  remunerated  at 
current  wages  for  the  occupation  and  worked  in  from  two-day  to  two- 
week  shifts. 

In  New  York  City  22  workrooms  were  operated  2  in  the  period  from 
January  to  April,  1915,  by  the  Mayor's  Committee  on  Unemployment, 
giving  work  to  about  5,000  persons  daily.  The  work  was  recognized  as 
merely  enabling  the  unemployed  to  accept  relief  without  loss  of  self- 
respect.  Those  who  could  not  be  placed  in  regular  employment  worked 
5  days  a  week  from  10  A.  M.  to  3  P.  M.,  the  hours  being  fixed  so  that  they 

1  Commons,  John  R.  and  John  B.  Andrews.  Principles  of  Labor  Legislation. 
New  York,  1916. 

1  New  York  City.  Mayor's  Committee  on  Unemployment.  Report.  New  York, 
1916. 


UNEMPLOYMENT  293 

could  seek  private  employment  at  morning  and  night.  Men  received  50 
cents  a  day  and  a  noon  meal,  women  60  cents  a  day.  A  great  variety 
of  work  was  done,  such  as  preparing  bandages,  making  garments,  mending 
shoes,  repairing  chairs,  etc.  No  goods  were  sold  in  the  competitive 
market  but  they  were  utilized  for  war  work,  for  the  unemployed  them- 
selves or  in  city  departments.  In  the  four  months  of  their  operation 
these  workshops  gave  a  total  of  215,429  days'  work. 

In  the  winter  of  1913-1914  considerable  difficulties  l  were  encountered 
regarding  wages  for  public  work  in  San  Francisco  performed  by  the  unem- 
ployed. At  first  the  current  wages  were  paid,  but  it  was  soon  found  that 
the  funds  were  rapidly  being  used  up  and  that  men  were  being  attracted 
from  other  cities.  Then  it  was  proposed  that  a  nominal  wage  of  20  cents 
an  hour  be  paid  merely  to  tide  over  the  men  out  of  work.  This  was  opposed 
by  the  trade  unions,  on  the  ground  that  it  would  tend  to  lower  the  standard 
of  wages.  Where  public  agencies  open  workshops  the  same  opposition 
is  bound  to  come  from  employers  if  goods  manufactured  at  unusually 
low  labor  costs  are  offered  below  the  standard  price  in  a  market  already 


In  actual  practice  the  administration  of  emergency  public  work  is 
frequently  complicated  by  political  factors  which  lower  its  efficiency.  If 
relief  to  the  unemployed  is  to  be  supplied  from  the  public  funds  in  any 
case,  its  conjunction  with  some  employment  probably  prevents  a  certain 
amount  of  fraud  and  saves  the  self-respect  of  bona  fide  workers.  It 
should  not  be  confused,  however,  with  genuine  constructive  measures 
which  remove  the  causes  of  unemployment. 

Prearranged  Public  Work. — With  public  work  prearranged  for  slack 
periods  the  case  is  somewhat  different.  Proposals  of  this  kind  are  allied 
to  the  attempts  at  regularization  of  private  industry. 

Among  the  types  of  government  undertakings  which  have  been 
utilized  for  taking  up  the  slack  in  employment  are  government  ship- 
building, afforestization,  land  reclamation,  construction  of  public  buildings, 
road  building  and  the  like.  For  instance,  assistance2  to  the  British 
unemployed  is  at  present  being  rendered  through  a  special  fund  under  the 
Ministry  of  Transport  which  provides  for  work  on  arterial  roads  and  on 
sewerage  schemes  in  connection  with  housing  projects.  About  70  local 
authorities  also  have  roadbuilding  schemes  in  operation,  or  under  consid- 
eration. In  the  United  States  approximately  $78,000,000  were  to  be  ex- 
pended 3  on  roads  last  spring  under  the  Federal  Roads  Act.  It  is  reported 
that  the  amount  of  federal  funds  under  contract  April  1,  roughly  totals 
$39,000,000,  and  every  state  availing  itself  of  federal  aid  must  match  the 
funds  dollar  for  dollar.  The  execution  of  such  work,  whether  by  federal, 

1  United  States.     Report  of  Commission  on  Industrial  Relations.     Vol.  V. 

2  Great  Britain.     Labour  Gazette.     January,  1921. 

*  Industrial  Information  Service,  Boston.     February  17,  1921. 


294  WASTE  IN  INDUSTRY 

state  or  municipal  governments,  necessitates  farseeing  plans  for  the 
financial  as  well  as  the  industrial  details.  If  money  must  be  secured  at 
the  time  when  a  depression  occurs,  it  is  as  difficult  for  the  state  as  for 
private  industry  to  obtain  funds.  The  program  must  be  ready  for  several 
years  in  advance  and  permanent  provisions  for  an  employment  fund  must 
be  made.  The  state  of  Pennsylvania  l  has  actually  set  up  such  a  fund. 

Practical  difficulties  are  liable  to  develop  even  when  the  public  work 
is  carefulty  laid  out.  There  is  danger  that  such  undertakings  become  the 
object  of  political  manipulations,  and  that  they  be  continued  after  the  real 
need  for  them  is  past.  More  opportunities  are  available  in  some  occu- 
pations than  in  others.  Moreover,  the  slack  season  unfavorable  to  private 
industry  is  often  equally  inopportune  for  public  work.  Weather  condi- 
tions are  frequently  unsuitable  for  highway  and  building  work  in  the 
winter  season,  and  the  attempt  to  carry  out  contracts  in  the  dull  season 
is  likely  greatly  to  increase  the  cost  of  public  works. 

Nevertheless  the  method  of  combating  unemployment  by  planning 
public  work  in  advance  has  been  tried  in  some  European  countries,  and 
the  principle  has  been  endorsed  by  various  students  of  the  subject. 

VI.  UNEMPLOYMENT  INSURANCE 

Unemployment  insurance  is  not  a  remedy  for  unemployment,  nor  is 
it  strictly  a  palliative.  It  is  a  plan  by  which  a  portion  of  the  burden 
of  supporting  those  who  are  not  in  a  position  to  produce  is  shifted  from 
the  state  to  industry.  It  is  in  the  main  humanitarian  in  its  purpose 
rather  than  calculatingly  designed  for  economic  efficiency. 

There  is,  however,  a  definite  economic  waste  which  a  proper  insurance 
system  might  alleviate.  That  is  the  permanent  evil  effect  upon  the 
unemployed  who  must  depend  upon  the  charity  of  the  state  for  sub- 
sistence. The  acceptance  of  insurance  does  not  entail  the  undermining 
of  character  and  ambition  which  may  accompany  acceptance  of  charity. 

Unemployment  insurance  may  be  effected  through  several  different 
agencies;  namely,  the  state,  industries,  the  trade  unions,  and  the  individual 
concerns  or  plants.  Although  development  of  state  unemployment  insur- 
ance has  been  made  abroad,  notably  in  central  Europe  and  England, 
few  attempts  in  this  direction  have  been  made  in  this  country.  Nor  has 
much  been  done  by  individual  plants  to  provide  direct  unemployment 
benefits,  although  protection  against  unemployment  is  afforded  by  part 
time  work  systems,  savings  plans  and  profit  sharing  schemes. 

Trades  Union  Benefits. — Although  a  few  national  labor  organizations 
in  the  United  States  have  established  systems  for  unemployment  insur- 
ance, the  greater  part  of  the  out-of-work  benefits  are  voted  from  the 
ordinary  union  assessments  to  meet  emergency  conditions. 

The  Cigar  Makers'  union  was  the  first  to  adopt  the  policy  of  unemploy- 
1  Pennsylvania  Laws,  1917,  No.  411. 


UNEMPLOYMENT 


295 


ment  insurance.  It  was  begun  locally  in  New  York  in  1875  and  in  1885 
was  adopted  by  the  national  body.  Later  the  Deutsch-Amerikanische 
Typographia  and  the  diamond  workers  established  regular  unemploy- 
ment benefits. 

At  present  the  Molders'  union  pays  out  the  greatest  amount  of  out- 
of-work  relief.  In  1918  a  total  of  $36,729  was  paid;  and  in  1919,  $34,356. 
The  Holders'  union  has  a  stamp  system  similar  to  that  in  Great  Britain. 
These  stamps  are  given  out  according  to  the  following  conditions.1 

"  The  extension  of  out-of-work  relief  to  unemployed  members,  of  which  all  of 
our  unions  were  duly  notified,  must  not  be  construed  as  applying  to  any  members 
excepting  those  who  are  suffering  from  enforced  idleness.  Members  who  have  not 
been  initiated  or  reinstated  for  6  months  are  not  entitled  to  out-of-work  stamps 
but,  if  idle,  are  entitled  to  honorary  cards.  The  extended  relief  does  NOT  apply 
to  members  who  have  received  13  weeks'  sick  benefits  and  then  13  out-of-work 
stamps,  unless  they  have  recovered  and  are  able  to  work  but  cannot  secure  the 
same.  The  extended  relief  does  not  apply  and  must  not  be  given  to  any  member 
excepting  he  is  totally  unemployed.  The  fact  he  works  only  one,  two  or  three  days 
a  week  does  not  entitle  him  to  out-of-work  stamps  and  every  financial  secretary  must 
govern  himself  accordingly  in  the  granting  of  the  extended  out-of-work  relief. 
A  member  entitled  to  receive  out-of-work  stamps,  when  out  of  employment,  can 
have  such  a  stamp  in  his  book  week  after  week  without  limit,  until  official  notice 
is  given  that  the  extended  benefits  have  been  discontinued." 

The  amount  of  unemployment  benefits  paid  by  organizations  affili- 
ated with  the  American  Federation  of  Labor  from  1903  to  1919,  inclusive, 
is  reported  as  follows: 


1903 

$79,538.37 

1904 

78,073.25 

1905 

85,050.72 

1906 

79,582.70 

1907 

46,481.79 

1908 

205,254.31 

1909 

484,028.49 

1910 

197,808.00 

1911 

218,742.71 

1912 

215,398.60 

1913 

69,445.70 

1914 

99,024.88 

1915 

256,002.29 

1916 

120,770.60 

1917 

57,751.63 

1918 

49,060.00 

1919 

65,026.42 

Total 

$2,407,040.46 

Average  Annual  Cost  .... 

$141,590.61 

International  Molders'  Journal,  Cincinnati,  February,  1921. 


296  WASTE  IN  INDUSTRY 

Many  unions  afford  indirect  unemployment  relief  by  remission  of  the 
dues  of  those  out  of  work.  About  20  national  unions  follow  this  practice. 

Local  unions  frequently  vote  portions  of  their  funds  to  unemployed 
members  who  are  in  want.  This  custom,  however,  cannot  be  classed 
as  insurance  as  the  members  have  no  claim  on  the  union  and  are  dependent 
on  the  good  will  of  the  local  membership. 

State  Unemployment  Compensation. — At  present  there  is  no  provision 
for  definite  unemployment  insurance  made  either  by  federal  or  state 
governments  in  the  United  States.  Organized  labor  has  long  advocated 
definite  out-of-work  schemes,  controlled  and  supported  in  part  by  the 
state.  Attempts  also  have  been  made  to  throw  the  whole  burden  upon  the 
employers;  the  plans  proposed  being  similar  to  workmen's  compensation 
laws  applied  to  injuries. 

A  typical  proposal  of  this  kind  has  recently  been  advocated  by  the 
Wisconsin  State  Federation  of  Labor. 

VH.  SPREADING  OUT  THE  JOB 

Under  this  heading  may  be  included  a  number  of  measures  which 
different  industrial  groups  have  initiated  as  remedies  or  at  least  as  pal- 
liatives for  unemployment.  Chief  among  them  is  the  shortening  of  the 
workday,  which  organized  labor  has  always  urged  very  largely  on  the 
ground  that  it  will  force  the  employment  of  a  larger  number  of  workers. 
On  this  point  the  records l  of  the  American  Federation  of  Labor  are 
explicit. 

The  annual  convention  in  1887,  in  discussing  unemployment  resulting 
from  the  introduction  of  machinery,  went  on  record  as  stating: 

"  This  evil  can  be  met  only  be  reducing  the  hours  of  labor  and  this  answer  is 
suggested  to  be  given  to  all  opponents  of  the  shorter  workday:  That  as  long  as  there 
is  one  man  who  seeks  employment  and  cannot  obtain  it,  the  hours  are  too  long." 

Ten  years  later  the  convention  stated  that  through  the  reduction  of 
hours, 

"the  evil  of  long  hours  of  labor  on  the  one  hand  and  a  lack  of  employment  on  the 
other  may  both  be  remedied  at  one  and  the  same  time.  We  realize  the  hardships 
and  poverty  of  the  wage  class,  but  we  believe  there  is  no  safer  or  more  practical 
plan  to  deal  with  the  great  question  of  the  unemployed  than  in  such  a  distribution 
of  labor  as  shall  work  to  the  advantage  of  those  at  work  and  out  of  work." 

At  the  1899  convention  the  American  Federation  so  far  emphasized  this 
aspect  as  to  disclaim  interest  in  the  efficiency  of  the  8-hour  day,  a  position 
which  two  years  later  was  repudiated.  The  1899  dictum  was: 

"  We  deprecate  the  assertion  sometimes  made  that  workmen  will  produce  as 
much  in  8  hours  as  in  9,  for  if  this  were  true  the  8-hour  day  would  be  shorn  of  half 
its  beneficial  results,  and  the  very  purpose  for  which  we  strive  would  be  defeated. 

1  American  Federation  of  Labor.  History,  Encyclopedia,  Reference  Book,  Wash- 
ington, 1919.  Pp.  215-223. 


UNEMPLOYMENT  297 

For  one  of  the  first  duties  of  labor  organizations  is  to  bring  about  such  a  condition 
as  to  enable  all  who  wish  to  work  to  find  remunerative  employment." 

Again  in  1907,  the  Federation  declared: 

"  We  regard  the  reduction  of  hours  of  labor  as  paramount  to  all  other  consider- 
ations, even  to  an  increase  in  wages,  except  in  such  occupations  where  the  earnings 
are  so  meager  as  to  make  it  difficult  to  maintain  a  fair  standard  of  living.  But  in 
those  trades  in  which  the  development  of  machinery  is  making  such  wonderful 
strides  it  is  absolutely  necessary  that  the  hours  of  work  be  shortened  in  order  that 
the  opportunity  for  employment  be  shared  by  all  members." 

During  the  war  when  unemployment  ceased  to  be  an  issue,  more 
emphasis  was  placed  upon  the  social  value  of  the  shorter  workday,  but 
with  the  present  industrial  depression  trade  unionists  return  to  the  plea 
that  employment  should  be  spread  among  a  larger  number  through 
decreasing  the  working  hours. 

This  theory  of  the  trade  unionists  that  shorter  hours  will  supply 
more  men  with  employment  has  generally  been  regarded  as  fallacious 
by  the  economists.  Unless  an  equal  amount  of  output  is  produced  by  the 
same  men  in  the  reduced  working  day,  production  costs  will  rise  pro- 
portionally to  the  additional  number  of  men  it  is  necessary  to  employ 
and  the  increased  price  of  the  product  will  diminish  sales. 

Nevertheless,  in  times  of  industrial  depression  employers  resort  to 
shortening  hours  as  a  means  of  supplying  employment  to  more  men. 
For  instance,  at  the  end  of  last  year  the  executive  of  the  Canadian 
Employment  Service  Council  adopted  a  resolution 1  that  private 
employers  and  government  departments,  municipal,  provincial  and 
federal,  be  requested  to  spread  available  employment  among  the  normal 
staff  by  short  time  rather  than  by  releasing  employees,  and  by  the  elim- 
ination of  all  overtime.  In  Great  Britain  the  Minister  of  Labour  issued  2 
a  circular  to  joint  industrial  councils,  reconstruction  committees,  and 
trade  boards  calling  attention  to  the  advantages  of  short-time  working, 
in  preference  to  the  dismissal  of  a  portion  of  the  staffs,  as  a  means  of 
spreading  out  the  amount  of  employment  available  when  it  is  impossible 
to  keep  the  whole  work  force  employed.  The  British  Federation  of 
Master  Cotton  Spinners  Association  put  3  into  operation  a  short-time 
work  plan  which  was  obligatory  on  all  its  members.  The  extent  to 
which  American  manufacturers  have  resorted  to  short-time  in  the  past 
months  is  well  known. 

The  spreading  out  of  employment  by  short-time  is  not  the  result  of 
purely  humanitarian  motives.  The  importance  of  maintaining  the 
organization  in  skilled  trades  and  the  lower  costs  of  production  under 
the  piece-rate  system  are  incentives  to  spreading  out  employment  by 

1  Canada.     Labour  Gazette,  January  1921. 

2  Great  Britain.     Labour  Gazette,  January,  1921. 

8  Industrial  Information  Service,  January,  27,  1921. 


298 


WASTE  IN  INDUSTRY 


means  of  short-time.  During  the  depression  of  1908  in  Great  Britain 
a  contraction  of  output  of  13.3%  in  the  cotton  trade  was  met  by  5% 
dismissal  and  8.7%  short-time;  in  the  glass  trade  a  contraction  of  11.8% 
by  11%  dismissal  and  1%  short  time. 

A  variation  of  the  short-time  method  of  spreading  employment  is  the 
alternation  of  workers  practiced  in  some  American  factories.  This 
enables  the  employer  to  maintian  his  force  by  giving  all  the  men  half  a 
week's  work  in  alternate  shifts,  and  secures  to  the  employees  at  least  a 
nominal  wage. 

Finally,  another  method  of  spreading  out  the  job  is  restriction  of 
production.  Both  organized  and  unorganized  workers  try  to  make  the 
job  last,  especially  in  seasons  of  unemployment.  The  economic  fallacy 
of  the  practice  is  apparent,  although  workers  believe  it  to  be  both  in  their 
own  and  their  fellow-workers'  interests. 

VIII.  IMMIGRATION  AND  UNEMPLOYMENT 

Whenever  there  is  a  considerable  amount  of  unemployment  in  the 
United  States,  immigration  automatically  falls  off,  but  by  many  it  is  not 
regarded  as  a  sufficient  check.  Organized  labor  in  this  country  con- 
sistently favors  a  restrictive  policy  in  regard  to  immigration  at  all  times, 
while  employers  in  some  industries  which  are  in  constant  need  particularly 
of  unskilled  labor,  advocate  the  "  open  door."  Besides,  there  are  senti- 
mental and  other  reasons  leading  many  to  advocate  unrestricted 
immigration. 

A  large  proportion  of  immigrants  to  this  country  are  unskilled 
laborers  or  persons  without  a  definite  occupation.  The  following  table 
classifies  the  arrivals  to  this  country,  by  occupation,  for  the  year  1920 
with  comparative  figures  for  1910-1914. 

NUMBER  AND  OCCUPATIONS  OF  IMMIGRANT  ALIENS 


Occupations 

Number 
1920 

Per  cent  of  Total 

1920 

1910-1914 

Professional 

12,442 
69,967 
15,257 
12,192 
81,732 
37,197 
28,081 
173,133 

2.9 
16.3 
3.5 
2.8 
19.0 
8.7 
6.4 
40.3 

1.2 
14.5 
24.3 
1.1 
18.4 
11.7 
2.7 
26.2 

Skilled                                                        

Farm  laborers                  .       .        

Fanners  

Laborers 

Servants 

Other  Occupations                                 .        .... 

No  occupation  (including  women  and  children)  .  .  . 
Total 

430,001 

100.0 

100.0 

UNEMPLOYMENT  299 

There  are  two  major  reasons  why  the  influx  of  large  numbers  of 
unskilled  workers,  and  to  some  extent  of  the  skilled,  inevitably  tends 
to  increase  the  unemployment  situation:  (1)  the  new  arrivals  largely 
concentrate  in  the  large  industrial  centers  where  the  employment  situa- 
tion is  most  acute;  (2)  unskilled  immigrant  labor,  as  a  class,  is,  for 
obvious  reasons,  more  subject  than  the  native  to  the  hazard  of  unemploy- 
ment or  irregular  employment. 

Recent  measures  for  restricting  immigration,  such  as  the  Dillingham 
bill,  provide  that  immigrants  of  any  nationality  shall  be  limited  to  a 
certain  per  cent  of  the  number  of  aliens  of  that  nationality  reported  to  be 
in  this  country  at  the  census  of  1910.  Some  exceptions  are  provided  for. 
The  tendency  of  present  day  legislation  is  to  prevent  undesirable  aliens 
from  entering  the  country  without  stopping  the  flow  of  immigration  of 
the  desirable  kind. 

It  is  one  question  to  restrict  immigration  and  another  to  afford  the 
immigrants  the  best  possible  chance  to  enter  useful  fields  of  employment. 
In  past  years  the  distribution  of  incoming  aliens  has  largely  been  in  the 
hands  of  private  agencies,  which  naturally  find  the  industrial  centers, 
where  a  labor  surplus  may  be  desirable,  the  most  fruitful  fields  for  their 
activities.  Little  concerted  effort  has  been  made  to  direct  these  immi- 
grants from  the  peasant  class  to  the  land.  This  lack  of  adequate  means 
of  distribution  tends  to  swell  the  ranks  of  the  unemployed  and  increase 
the  already  large  class  of  casuals  who  are  out  of  work  during  a  considerable 
portion  of  the  year. 

The  European  point  of  view  in  regard  to  immigration  to  this  country 
has  undergone  profound  changes  since  the  Great  War.1  The  exodus  to  the 
United  States  is  no  longer  regarded  with  complacency.  The  countries 
exhausted  by  war  wish  to  retain  their  manpower  to  build  up  the  impaired 
economic  structure.  Then,  too,  it  is  realized  that  the  addition  of  millions 
of  alien  workers  to  our  population  will  give  the  United  States  a  potential 
strength  which  is  disturbing  to  European  minds  for  economic  as  well 
as  for  political  reasons.  In  order  to  give  the  new  immigration,  which 
cannot  be  prevented,  a  different  trend,  European  nations  are  attempting 
by  various  devices  to  retain  a  hold  on  their  nationals  after  they  leave  the 
home  land.  Formerly,  with  one  or  two  noteworthy  exceptions,  the  emi- 
grant was  set  adrift  when  he  left  the  native  heath.  Now  he  is  taught 
to  be  mindful  of  the  call  of  the  home  country  and  to  respond  to  its  needs. 

The  nwnber  of  immigrants  and  emigrants  for  a  10-year  period  is  shown 
in  the  following  table: 

1  Immigration  and  the  Future.    Frances  Kellar.     New  York,  1920. 


300  WASTE  IN  INDUSTRY 

TOTAL  ALIEN  IMMIGRATION  AND  EMIGRATION,  FISCAL  YEARS  1910  TO  1920 


Year 

Immigrant 

Emigrant 

1910 

1,041,570 

202,436 

1911 

878,587 

295,666 

1912 

838,172 

333,262 

1913 

1,197,892 

308,190 

1914 

1;218,480 

303,338 

1915 

326,700 

204,074 

1916 

298,826 

129,765 

1917 

295,403 

66,277 

1918 

110,618 

94,585 

1919 

141,132 

123,522 

1920 

430,001 

288,315 

Recent  figures,  beginning  July  1,  1920,  indicate  a  large  increase  of 
immigration  even  over  the  pre-war  period.  To  meet  this  influx,  the  Bureau 
of  Information,  which  had  been  discontinued  during  the  war,  has  been 
revived  within  the  Immigration  Service.  The  renewal  of  the  Bureau  has 
been  welcomed  by  many  industrial  concerns,  employment  bureaus,  public 
officials  and  professional  men,  as  a  step  in  advance  toward  the  assimila- 
tion of  the  foreigner. 

An  overwhelming  number  of  immigrants  locate  in  the  northeastern 
section  of  the  country.  There  has  been  a  slight  falling  off  since  the 
pre-war  period  in  New  York,  New  Jersey  and  Pennsylvania,  and  an 
increase  in  the  number  attracted  to  New  England.  A  loss  of  new  aliens 
is  also  indicated  for  the  industrial  and  farming  territories  of  Ohio, 
Indiana,  Michigan,  and  Wisconsin.  The  percentage  for  the  central  and 
southern  regions,  which  never  attract  many  aliens,  is  about  constant. 
The  gain  in  the  southwest  is  due  to  the  Mexicans  who  flock  into  Texas. 
There  is  also  to  be  noted  a  pronounced  gain  in  the  Pacific  states. 

New  York  still  holds  the  lead  for  actual  numbers.  Of  the  430,000 
coming  to  America  during  the  fiscal  year  ending  June  30,  1920,  no  less 
than  106,000  located  in  New  York  State,  the  greater  part  in  New  York  City. 

The  future  of  immigration  to  this  country  no  man  can  safely  predict. 
Whatever  measures  of  restriction  are  adopted  by  Congress  and  European 
Governments,  it  is  likely  that  at  most  times  enough  immigrants  will 
reach  our  shores  to  affect  the  question  of  employment.  The  outstanding 
lack  at  the  present  time  is  competent  distributing  agencies  which  will 
place  the  newcomers  to  the  best  advantage  for  employment,  and  particu- 
larly to  help  them  to  agricultural  pursuits  so  that  they  may  not  swell 
the  labor  surplus  at  industrial  centers. 

ZORA    P.    WlLKINS. 

DONALD  G.  FERGUSON. 
JOHN  KOREN. 


CHAPTER  XII 
STRIKES  AND  LOCKOUTS  IN  THE  UNITED  STATES 

BY  C.  W.  DOTEN 

Definition  of  Strike  and  Lockout. — Many  attempts  have  been  made 
to  define  the  terms  "  strike  "  and  "  lockout,"  and  some  writers  have 
undertaken  to  formulate  detailed  classifications  of  these  stoppages  of 
work;  but  for  the  purposes  of  this  study  the  following  definitions  seem 
as  satisfactory  as  any.  Moreover,  most  of  the  statistics  contained  herein 
have  been  gathered  and  compiled  on  the  basis  of  this  classification. 

"  A  strike  is  a  concerted  withdrawal  from  work  by  a  part  or  all  of  the  employees 
of  an  establishment,  or  several  establishments,  to  enforce  a  demand  on  the  part  of 
employees."  1 

"  A  lockout  is  a  refusal  on  the  part  of  an  employer  or  several  employers  to  per- 
mit a  part  or  all  of  the  employees  to  continue  at  work,  such  refusal  being  made  to 
enforce  a  demand  on  the  part  of  employers."1 

It  is  extremely  difficult  in  many  cases  to  distinguish  between  strikes 
and  lockouts.  The  industrial  effects  are  practically  the  same,  and  even 
though  statistics  have  been  gathered  separately  for  the  two  forms  of 
dispute  between  employer  and  employee,  it  has  seemed  best  in  this  study, 
which  must  of  necessity  cover  a  large  field  in  a  somewhat  general  manner, 
to  deal  only  with  strikes.  To  do  otherwise  would  entail  a  duplication 
of  all  tables  or  else  the  added  labor  of  combining  tables.  If  this  were 
done,  it  would  only  increase  the  totals  slightly,  as  the  number  of  lock- 
outs is  small  in  comparison  with  the  number  of  strikes,  and  it  would  render 
it  difficult  to  check  the  accuracy  of  the  figures  by  reference  to  the  original 
sources. 

Lack  of  Statistical  Information. — It  is  unfortunate  that  during  the 
past  sixteen  years  there  should  have  been  no  adequate  statistical  inves- 
tigation of  strikes  in  the  United  States.  The  record  of  strikes  for  the 
twenty-five  year  period  from  1881  to  1905,  inclusive,  is  complete  and 

1  Twenty-first  Annual  Report  of  the  (U.  S.)  Commissioner  of  Labor,  1906,  page  11. 

301 


302  WASTE  IN   INDUSTRY 

detailed  by  reason  of  four  exhaustive  reports l  published  by  the  United 
States  Bureau  of  Labor.  These  reports  were  based  upon  investigations 
in  the  field  by  expert  agents  of  the  Bureau. 

During  the  past  seven  years  the  Bureau 2  has  gathered  statistics  of 
strikes  and  lockouts  from  various  sources  such  as  daily  papers,  labor 
journals,  and  the  reports  of  state  boards  of  conciliation  and  arbitration, 
and  has  published  them  in  the  Monthly  Labor  Review.  The  Bureau  does 
not  regard  these  statistics  as  comparable  with  those  contained  in  the  earlier 
reports  either  in  completeness  or  in  accuracy,  for  it  has  not  undertaken 
any  special  field  investigations,  and  it  has  no  authority  "  to  require 
reports  relative  to  strikes  from  anyone." 

Number  of  Strikes. — It  is  not  safe  to  assume  that  even  the  number 
of  strikes  is  complete  in  these  recent  reports,  though  this  is  the  sim- 
plest information  to  be  obtained.  In  the  following  table  the  recent  figures 
are  included  with  those  taken  from  the  earlier  reports.  The  reports  for 
1916-1919  do  not  give  the  number  of  establishments  or  the  number  of 
employees  affected  in  such  a  way  as  to  make  it  possible  to  include  them 
in  this  table. 

It  is  apparent  from  an  examination  of  Table  I  that  strikes  increased 
in  number  during  the  twenty-five  years  from  1881  to  1905.  The  number 
of  strikes  and  the  number  of  establishments  involved  in  these  disturb- 
ances have  increased  at  a  more  rapid  rate  than  the  growth  of  population 
or  the  numbers  of  wage  earners. 

It  is  apparent  from  Table  I  that  the  number  of  strikers  and  the  num- 
ber of  employees  thrown  out  of  work  by  strikes  have  not  increased  as  fast 
as  the  number  of  strikes. 

Causes  of  Strikes. — In  the  earlier  reports  of  the  United  States  Bureau 
of  Labor,  strikes  were  classified  according  to  causes  or  objects,  and  the 
practice  is  still  continued  by  the  Bureau,  though  the  list  of  causes  now 
used  is  much  shorter.  A  strike  usually  has  more  than  one  cause  or  object, 
and  it  frequently  happens  that  the  cause  announced  by  the  strikers  may 
not  be  the  most  fundamental  one.  It  is  therefore  difficult  to  secure 
information  on  this  point,  and  all  classifications  of  this  sort  must  be 
regarded  as  merely  an  approximation  of  the  truth. 

It  is  probable,  however,  that  the  degree  of  error  is  not  very  great  in 
the  case  of  such  causes  as  are  included  in  Table  II. 

Wages  and  hours  have  always  been  the  chief  cause  of  strikes  and 

1  These  reports  were  as  follows: 

1.  Third  Annual  Report  covering  the  period  from  Jan.  1,  1881,  to  Dec.  31,  1886. 

2.  Tenth  Annual  Report,  Jan.  1,  1887,  to  June  30,  1894. 

3.  Sixteenth  Annual  Report,  July  1,  1894,  to  Dec.  31,  1900. 

4.  Twenty-first  Annual  Report,  Jan.  1,  1901,  to  Dec.  31,  1905. 
1  Now  the  Bureau  of  Labor  Statistics. 


STRIKES  AND  LOCKOUTS  IN  THE  UNITED  STATES 


303 


TABLE  I 

STRIKES,  ESTABLISHMENTS  INVOLVED,  STRIKERS,  AND  EMPLOYEES  THROWN  OUT  OP 
WORK,  BY  YEARS,  1881  TO  1919 


EMPLOYEES 

ESTABLISHMENTS 

STRIKERS 

THROWN  OUT  OP 

WORK 

Year 

Strikes 

Average 

Average 

Average 

Number 

per 

Number 

per 

Number 

per 

Strike 

Strike 

Strike 

1881 

471 

2,928 

6.2 

101,070 

215 

129,521 

275 

1882 

454 

2,105 

4.6 

120,860 

266 

154,671 

341 

1883 

478 

2,759 

5.8 

122,198 

256 

149,763 

313 

1884 

443 

2,367 

5.3 

117,313 

265 

147,054 

332 

1885 

645 

2,284 

3.5 

158,584 

246 

242,705 

376 

1886 

1432 

10,053 

7.0 

407,152 

284 

508,044 

355 

1887 

1436 

6,589 

4.6 

272,776 

190 

379,676 

264 

1888 

906 

3,506 

3.9 

103,218 

114 

147,704 

163 

1889 

1075 

3,786 

3.5 

205,068 

191 

249,559 

232 

1890 

1833 

9,424 

5.1 

285,900 

156 

351,944 

192 

1891 

1717 

8,116 

4.7 

245,042 

143 

298,939 

174 

1892 

1298 

5,540 

43 

163,499 

126 

206,671 

159 

1893 

1305 

4,555 

3.5 

195,008 

149 

265,914 

204 

1894 

1349 

8,196 

6.1 

505,049 

374 

660,425 

490 

1895 

1215 

6,973 

5.7 

285,742 

235 

392,403 

323 

1896 

1026 

5,462 

5.3 

183,813 

179 

241,170 

235 

1897 

1078 

8,492 

7.9 

332,570 

309 

408,391 

379 

1898 

1056 

3,809 

3.6 

182,067 

172 

a249,002 

a236 

1899 

1797 

11,317 

6.3 

308,267 

172 

417,072 

232 

1900 

1779 

9,248 

5.2 

399,656 

225 

505,066 

284 

1901 

2924 

10.908 

3.7 

396,280 

136 

543,386 

186 

1902 

3162 

14,248 

4.5 

553,143 

175 

659,792 

209 

1903 

3494 

20.248 

5.8 

531,682 

152 

656,055 

188 

1904 

2307 

10,202 

4.4 

875,754 

163 

517,211 

224 

1905 

2077 

8,292 

4.0 

176,337 

85 

221,686 

107 

1914 

&  1204 

1915 

b  1246 

1916 

3681 

1917 

4324 

1918 

3232 

1919 

3253 

i 

a  Not  including  2  strikes  involving  33  establishments  not  reported. 

b  Figures  not  comparable  with  those  in  following  years,  though  best  available 


304 


WASTE  IN  INDUSTRY 


will  probably  continue  to  be  in  the  future,  though  they  do  not  now  have 
the  preponderance  that  they  had  in  the  earlier  years.     It  should  be 

TABLE  II 
STRIKES  DUE  WHOLLY  OR  PARTIALLY  TO  CERTAIN  CAUSES 


WAGES  AND  HOURS 

RECOGNITION 
OF  THE  UNION 

SYMPATHY 

Years 

Per  Cent 

Per  Cent 

Per  Cent 

Number 

of  all 

Number 

of  all 

Number 

of  all 

Strikes 

Strikes 

Strikes 

1881 

397 

84.3 

32 

6.8 

4 

0.8 

1882 

349 

76.9 

31 

6.8 

4 

0.9 

1883 

370 

77.4 

46 

9.6 

3 

0.6 

1884 

333 

75.2 

42 

9.6 

9 

2.0 

1885 

479 

74.3 

54 

8.4 

20 

3.1 

1886 

1123 

78.4 

165 

11.5 

41 

2.9 

1887 

896 

62.4 

265 

18.5 

67 

4.7 

1888 

560 

61.8 

143 

15.8 

34 

3.8 

1889 

686 

63.8 

161 

15.0 

65 

6.1 

1890 

1129 

61.6 

286 

15.6 

181 

9.9 

1891 

958 

55.2 

298 

17.4 

198 

11.5 

1892 

744 

57.3 

238 

18.3 

116 

8.9 

1893 

810 

62.1 

219 

16.8 

59 

4.5 

1894 

878 

65.1 

190 

14.1 

118 

8.8 

1895 

864 

71.1 

200 

16.5 

7 

0.6 

1896 

609 

59.4 

278 

27.1 

6 

0.6 

1897 

741 

68.7 

175 

16.2 

8 

0.7 

1898 

713 

67.5 

214 

20.3 

8 

0.8 

1899 

1205 

67.1 

448 

24.9 

26 

1.5 

1900 

1231 

69.2 

376 

21.1 

27 

1.5 

1901 

1679 

57.4 

967 

32.1 

69 

2.4 

1902 

1967 

62.2 

1014 

32  1 

83 

2.6 

1903 

2255 

64.5 

1106 

31.7 

83 

2.4 

1904 

1140 

49.4 

898 

38.9 

85 

3.7 

1905 

1076 

51  8 

738 

35  5 

56 

2.7 

1914 

389 

52.7 

89 

12.0 

25 

3.4 

1915 

673 

64.3 

79 

7.6 

9 

0.9 

1916 

1929 

62.6 

556 

18.0 

32 

1.0 

1917 

2124 

59.8 

507 

14  3 

70 

1.9 

1918 

1779 

63.6 

367 

13.1 

34 

1.2 

1919 

1656 

54.3 

690 

22.6 

100 

3.3 

1 

remembered  that  more  than  one-half  of  the  strikes  in  1881-1882  and  nearly 
one-half  in   1883,  1884,  1885,  and  1886,  were  by  unorganized  labor  and 


STRIKES  AND  LOCKOUTS  IN  THE  UNITED  STATES  305 

consequently  no  question  of  recognition  of  the  union  could  have  been 
involved  in  these  disputes.  Even  if  these  six  years  are  left  out  of 
account,  there  was  a  very  large  increase  in  the  number  and  proportion 
of  strikes  due  to  this  cause,  especially  after  1897.  It  will  be  surprising 
to  many,  however,  to  see  that  there  has  been  a  marked  falling-off  in  the 
relative  number  of  strikes  for  this  cause  in  recent  years  as  compared  with 
1898  to  1905. 

Surprise  may  also  be  aroused  by  the  figures  for  sympathetic  strikes. 
Thirty  years  ago  such  strikes  were  very  common;  but  during  the  depres- 
sion of  the  90's  they  almost  completely  disappeared  as  they  did  again  in 
the  hard  times  of  1915,  and  for  the  past  quarter  of  a  century  they  have 
been  relatively  unimportant,  so  far  as  can  be  seen  from  the  data  now 
available. 

Strikes  against  reductions  in  wages  increase  in  a  period  of  depression, 
especially  in  the  earlier  stages  of  the  downward  swing  of  production  and 
prices,  while  strikes  for  an  increase  in  wages  move  in  the  opposite  direc- 
tion. At  the  present  time  many  such  defense  strikes  are  occurring. 
It  is  significant  that  even  strikes  ostensibly  for  an  increase  of  wages 
are  really  for  the  purpose  of  preventing  a  reduction  and  are  undertaken 
in  some  cases  at  least  in  the  hope  that  through  arbitration  or  compromise 
a  somewhat  smaller  reduction  will  be  suffered. 

Jurisdictional  Disputes. — One  other  class  of  strikes  should  be  men- 
tioned because  of  the  very  great  popular  misconception  in  regard  to  their 
frequency.  These  are.  Jurisdictional  disputes,  that  is,  strikes  by  the 
members  of  one  trade  against  the  performance  of  work  which  they  regard 
as  belonging  to  their  craft  by  members  of  some  other  craft  or  trade. 
According  to  the  Bureau's  report,  there  were  in  1916,  19  such  strikes;  in 
1917,  21;  in  1918,  16;  and  in  1919,  15.  Reduced  to  percentages,  they 
constitute  about  0.5%  of  all  strikes  in  these  years  and  are  one  of  the  least 
important  classes  of  disputes  deemed  worthy  of  separate  consideration. 
In  the  period  1881  to  1905,  there  were  315  strikes  of  this  sort  out  of 
36,757,  or  a  little  over  0.8%.  The  percentage  of  establishments  was  0.3%, 
and  out  of  a  total  of  6,728,048  strikers  only  4,220,  or  0.06%,  struck  for 
this  reason. 

Table  III  shows  the  relative  numbers  of  strikes  ordered  by  labor 
organizations  and  those  which  have  taken  place  among  unorganized 
laborers  during  the  period  from  1881  to  1905.  It  is  significant  that 
strikes  of  the  latter  type  were  more  numerous  than  union  strikes  in  1881 
and  1882,  and  that  they  remained  nearly  equal  until  after  1886.  It  is 
also  noteworthy  that  non-union  labor  does  not  use  the  same  judgment 
in  timing  its  strikes  to  conform  with  favorable  business  conditions.  This 
is  particularly  noticeable  during  the  period  of  depression  in  the  90's. 
The  number  of  union  strikes  decreased  much  more  than  the  fall  in  com- 


306 


WASTE  IN  INDUSTRY 


modity  prices  in  this  period  and  rose  much  more  rapidly  than  the  index 
of  prices  when  conditions  improved  after  1898,  while  non-union  strikes 
show  no  such  conformity  to  business  conditions. 

TABLE  III 
A  COMPARISON  OP  THE  STRIKES  OF  ORGANIZED  AND  UNORGANIZED  LABOR 


Year* 

ORDERED  BY  LABOR 
ORGANIZATIONS 

NOT  ORDERED  BY  LABOR 
ORGANIZATIONS 

Number 

Per  Cent 

Number 

Per  Cent 

1881 

223 

47.4 

248 

52.6 

1882 

220 

48.5 

234 

51.5 

1883 

271 

56.7 

207 

43.3 

1884 

240 

54.2 

203 

45.8 

1885 

357 

55.3 

288 

44.7 

1886 

763 

53.3 

669 

46.7 

1887 

952 

66.3 

483 

33.7 

1888 

616 

68.1 

288 

31.9 

1889 

724 

67.3 

351 

32.7 

1890 

1306 

71.3 

525 

28  .7 

1891 

1284 

74.8 

432 

25.2 

1892 

918 

70.7 

380 

29.3 

1893 

906 

69.4 

399 

30.6 

1894 

847 

62.8 

501, 

37.2 

1895 

658 

54.2 

555 

45.8 

1896 

662 

64.6 

363 

35.4 

1897 

596 

55.3 

482 

44.7 

1898 

638 

60.4 

418 

39.6 

1899 

1115 

62.1 

682 

37.9 

1900 

1164 

65.4 

615 

34.6 

1901 

2218 

75.9 

706 

24.1 

1902 

2474 

78.2 

688 

21.8 

1903 

2754 

78.8 

740 

21.2 

1904 

1895 

82.1 

412 

17.9 

1905 

1552 

74.7 

525 

25.3 

*  No  comparable  figures  are  available  in  the  reports  of  the  Bureau  of  Labor  Statis- 
tics for  the  years  1914-1919. 

Table  IV  classifies  strikes  by  industries.  It  is  taken  from  a  much 
larger  table  in  the  Report :  of  the  Bureau  of  Labor.  Certain  very  marked 
differences  among  the  industries  are  to  be  noted  in  this  table.  In  Boots 
and  Shoes,  Textiles,  Glass,  and  Railroad  Transportation  strikes  are  usually 
confined  to  one  plant  or  establishment,  while  in  the  Building  Trades, 
1  Twenty-first  Annual  Report  of  the  Commissioner  of  Labor,  pp.  16-17. 


STRIKES  AND  LOCKOVTS  IN  THE  UNITED  STATES 


307 


Clothing,  and  some  others  a  considerable  number  of  establishments  are 
usually  involved. 

TABLE  IV 

STRIKES,  ESTABLISHMENTS  INVOLVED,  STRIKERS.  AND  EMPLOYEES  THROWN  OUT  OP 
WORK,  BY  INDUSTRIES,  IN  WHICH  THE  GREATEST  NUMBER  OF  STRIKES  OCCURRED, 
1881  TO  1905 


Industry 

Strikes 

ESTABLISHMENTS 

STRIKES 

EMPLOYEES 
THROWN  OUT 
OF  WORK 

Number 

Average 
per 
strike 

Number 

Average 
per 
strike 

Number 

Average 
per 
strike 

Boots  and  Shoes  
Building  Trades  
Clothing,  Men's   .... 
Clothing,  Women's.  . 
Coal  and  Coke  
Textiles 

1,101 
9,564 
1,147 
640 
3,336 
1,251 

111 
665 

79 
396 

1,668 

916 
548 
835 

1,001 
506 
1,057 

1,780 

1,555 

69,899 
15,996 
4,918 
17,025 
1,878 

440 
832 
187 
419 

4,722 

5,665 
1,020 
1,219 

2,999 
680 
4,450 

7,381 

1.4 
7.3 
13.9 
7.7 
5.1 
1.5 

4.0 
1.3 
2.4 
11 

2.8 

6.2 
1.9 
1.5 

3.0 
1.3 

4.2 

4.1 

88,553 
917,905 
372,214 
215,595 
2,006,353 
250,352 

38,308 
166,357 
12,631 
33,056 

208,352 

249,545 
63,641 
250,125 

44,424 
123,413 
122,671 

231,988 

80 
96 
325 
337 
601 
201 

345 
250 
160 

83 

125 

272 
116 
300 

44 
244 
116 

130 

160,059 
1,083,669 
459,059 
232,154 
2,460,743 
434,354 

64,928 
277,470 
14,016 
77,940 

282,706 

275,483 
135,431 
436,647 

58,471 
218,303 
142,451 

281,890 

145 
113 
400 
363 
738 
347 

585 
417 
177 
197 

169 

301 
247 
523 

58 
431 
135 

158 

Cotton  and  woolen 
goods  
Cotton  goods  
Wooden  goods  .... 
Woolen  goods  
Foundry  and  Machine 
Shop  
Freight  handling  and 
Teaming.  . 

Glass  
Iron  and  Steel  
Printing  and  Publish- 
ing  .  . 

Railroad  transporta- 
tion   

Stone  quarrying  and 
cutting  .  . 

Tobacco: 
Cigars    and    Ciga- 
rettes   

Total  

25,350 

139,407 

5.5 

5,145,131 

203 

6,661,420 

263 

Total  all  Industries 

36,757 

181,407 

4.9 

6,728,048 

183 

8,703,824 

237 

It  can  be  seen  that  two  industries,  the  Building  Trades  and  Coal  and 
Coke,  are  the  ones  in  which  the  strike  evil  is  most  prevalent.     These 


308  WASTE  IN  INDUSTRY 

two  industries  are  responsible  for  more  than  one-half  of  all  the  strikes 
covered  by  this  table  and  more  than  one-third  of  all  the  strikes  in  the 
country.  They  have  a  still  greater  preponderance  over  other  lines  of 
industry  as  measured  by  the  number  of  strikers  and  the  number  of 
employees  thrown  out  of  employment  as  a  result  of  strikes.  It  will  be 
noted  later  on  in  this  report  that  there  is  a  very  clear  correlation  between 
the  number  of  strikes  and  the  seasonal  or  irregular  character  of  employ- 
ment. Is  it  too  much  to  hope  that  strikes  could  be  greatly  reduced  in 
these  industries  if  the  employees  in  them  could  be  assured  of  more  regular 
and  constant  employment? 

Losses  in  Wages  and  Production. — In  its  sixteenth  annual  report, 
the  United  States  Bureau  of  Labor  undertook  to  ascertain  the  wage 
loss  to  employees  and  the  loss  suffered  by  employers  by  reason  of  strikes 
during  the  twenty-year  period  from  1881  to  1900.  The  following  table 
gives  these  losses  by  years : 

In  commenting  on  these  figures,  the  bureau  calls  attention  to  the 
fact  that  many  of  these  losses  were  made  up  later  by  speeding  up  the 
work,  by  more  regular  employment,  etc.,  so  that  they  must  not  be  regarded 
as  net  losses  in  the  case  of  either  the  employees  or  the  employers.  It 
should  be  noted  also  that  many  of  the  strikes  were  for  higher  wages 
and  were  successful.  In  such  cases  it  is  probable  that  the  wage  loss  to 
employees  was  soon  recovered  through  larger  earnings. 

Even  taking  the  figures  as  they  stand,  they  are  not  particularly 
impressive  as  evidence  of  great  loss.  The  total  loss  to  employees  in  twenty 
years  was  only  $267,863,478  or  a  yearly  average  of  $12,893,174.  The 
loss  to  employers  averages  $6,136,556  a  year. 

The  loss  to  employees,  if  it  had  been  borne  equally  by  all  those  gain- 
fully employed,  according  to  the  Census  classification,  would  have 
imposed  an  .average  burden  of  only  55  cents  a  year  upon  each  person. 
The  per  capita  burden  in  1881  would  have  been  19  cents,  in  1890,  43 
cents,  and  in  1900,  63  cents. 

But  all  those  gainfully  employed  are  not  laborers  or  wage  earners, 
therefore  it  may  be  worth  while  to  make  another  estimate.  W.  I.  King 
in  his  "  Wealth  and  Income,"  p.  168,  gives  a  table  which  is  perhaps  as 
accurate  as  anything  yet  published  on  the  number  and  earnings  of  wage 
earners  in  the  United  States.  Making  use  of  his  figures  as  the  basis  of 
computation  indicates  that  the  average  annual  loss  per  wage  earner 
during  the  twenty-year  period  was  77  cents,  while  in  1881  it  was  29  cents, 
in  1890,  85  cents,  and  in  1900,  90  cents.  King  estimates  the  average 
wages  in  1900  to  have  been  $417.  Thus  the  loss  due  to  strikes  in  that 
year  would  have  amounted  to  a  little  over  0.2%  of  each  working  man's 
wages,  or  in  other  words  about  f  of  a  day's  time,  while  the  yearly  average 
for  the  whole  period  would  have  been  about  f  of  a  day  per  capita.  In  any 


STRIKES  AND  LOCKOUTS  IN  THE  UNITED  STATES 


300 


case  it  is  less  of  a  loss  than  an  added  national  holiday  such  as  Armistice 
Day  would  entail.  Moreover  it  is  worthy  of  note  that  illness  occasions  a 
loss  each  year  at  least  twelve  times  as  great,  and  that  the  fire  loss  in  the 
country  (1881-1900)  was  nearly  ten  times  the  wage  loss  due  to  strikes. 

TABLE  V 

WAGE  Loss  OF  EMPLOYEES,  ASSISTANCE  TO  EMPLOYEES,  AND  Loss  OP  EMPLOYERS, 
JANUAHY  1,  1881  TO  DECEMBER  31,  1900 


To  date  when  strikers  were  re- 

employed  or  employed  elsewhere 

Loss  to 

.  Assistance  to 

Employers 

Wage  loss  of 

employees 

employees 

by  labor 

organizations 

1881 

$3,372,578 

$287,999 

$1,919,483 

1882 

9,864,228 

734,339 

4,269,094 

1883 

6,274,480 

461,233 

4,696,027 

1884 

7,666,717 

407,871 

3,393,073 

1885 

10,663,248 

465,827 

4,388,893 

1886 

14,992,453 

1,122,130 

12,357,808 

1887 

16,560,534 

1,121,554 

6,698,495 

1888 

6,377,749 

1,752,668 

6,509,017 

1889 

10,409,686 

592,017 

2,936,752 

1890 

13,875,338 

910,285 

5,135,404 

1891 

14,801,505 

1.132,557 

6,176,688 

1892 

10,772,622 

833,374 

5,145,691 

1893 

9,938,048 

563,183 

3,406,195 

1894 

37,145,532 

931,052 

18,982,129 

1895 

13,044,830 

559,165 

5,072,282  . 

1896 

11,098,207 

462,165 

5,304,235 

1897 

17,468,904 

721,164 

4,868,687 

1898 

10,037,284 

585,228 

4,596,462 

1899 

15,157,965 

1,096,030 

7,443,407 

1900 

18,341,570 

1,434,452 

9,431,299 

Total. 

$257,863,478 

$16,174,793 

$122,731,121 

But  the  above  reckoning  has  been  based  upon  the  assumption  that 
the  loss  set  forth  in  Table  V  is  an  actual  loss.  As  has  already  been  noted 
there  are  numerous  ways  in  which  this  loss  may  be  compensated  for  or 
offset.  Perhaps  the  most  important  of  these  is  that  the  time  lost  in 
strikes  is  really  taken  out  of  the  time  that  employees  would  have  been 
idle  in  any  case  rather  than  out  of  production  time.  This  is  particularly 


310 


WASTE  IN  INDUSTRY 


true  of  seasonal  and  irregular  occupations  and  industries  like  the  building 
trades,  clothing  manufactures,  boot  and  shoe  manufactures,  glass  making, 
quarrying,  and  coal  mining. 

Strikes  in  Seasonal  Occupations.— It  is  significant  that  more  than 
one-half  of  all  the  strikes  that  occurred  between  1881  and  1905  and  much 
more  than  one-half  of  the  employees  thrown  out  of  work  were  in 
occupations  or  industries  that  are  highly  irregular  or  distinctly  seasonal 
in  character.  Among  these  coal  and  coke  is  the  most  conspicuous, 
because  9%  of  the  strikes  and  over  28%  of  all  the  employees  .thrown 
out  of  work  through  strikes  were  in  this  industry.  It  is  possible  to  trace 
the  effects  of  strikes  in  this  industry  both  upon  the  employee's  working 
time  and  upon  production.  This  is  done  in  the  following  table: 


TABLE  VI 

STRIKES  AND  PRODUCTION  IN  COAL  MINES,  ANTHRACITE  AND  BITUMINOUS,  IN  THE 
UNITED  STATES,  1910  TO  1916  * 


Men  em- 

Men on 

Working  days  lost 
by  reason  of  strikes 

Days 

Average  tonnage 

Tons  of 

ployed. 

Strike. 

worked 

coal 

Year 

Thous- 

Thous- 

per 

produced. 

ands 

ands 

Per  man 

Per  man 

year 

Per  man 

Per  man 

Millions 

employed 

on  strike 

per  year 

per  day 

1910 

725 

218 

26.5 

88.0 

220 

618 

2.8 

447 

1911 

722 

41 

1.3 

24.0 

220 

615 

2.8 

443 

1912 

723 

311 

17.3 

40.0 

226 

663 

2.9 

478 

1913 

748 

135 

4.1 

22.5 

238 

681 

2.9 

509 

1914 

763 

162 

14.5 

68.0 

210 

602 

2.9 

459 

1915 

734 

67 

3.4 

37.0 

209 

645 

3.1 

475 

1916 

721 

171 

4.6 

19.5 

236 

732 

3.1 

527 

*  Geological  Survey  figures  in  the  Statistical  Abstract  of  the  United  States,  1917, 
pp.  259,  537. 

Table  VI  indicates  very  little  correlation  between  strikes  and  either 
the  yearly  output  of  coal  or  the  extent  of  employment.  Taken  by  them- 
selves the  figures  representing  the  number  of  men  on  strike  and  working 
days  lost  per  man  would  seem  to  indicate  a  tremendous  waste  in  product- 
ive capacity  and  a  great  loss  in  wages;  but  it  is  apparent  that  these 
losses  were  almost  entirely  wiped  out  before  the  end  of  the  year. 

It  is  noteworthy  that  there  was  more  coal  produced  in  1910  than  in 
1911,  even  though  the  former  year  witnessed  many  protracted  strikes 
involving  large  numbers  of  employees.  Moreover,  there  was  no  real  loss 


STRIKES  AND  LOCKOUTS  IN  THE  UNITED  STATES  311 

of  employment  by  reason  of  these  strikes.  Again  1912,  with  43%  of  the 
entire  labor  force  out  on  strike  and  with  an  average  loss  per  man  of  40 
days,  shows  large  total  production,  increased  output  per  man  per  day 
and  per  year,  and  six  days  more  employment  per  man  than  the  previous 
year  which  was  relatively  strikeless. 

Low  production  in  1914  and  1915  was  due  to  general  business  depres- 
sion caused  by  the  Great  War  rather  than  to  strikes. 

It  is  probable  that  much  the  same  results  would  be  shown  if  statistics 
could  be  obtained  in  other  seasonal  and  irregular  employments.  It  is 
true  also  that  all  employments  are  subject  to  more  or  less  irregularity, 
especially  when  individual  establishments  are  taken  into  account. 

These  statistics  therefore  confirm  to  some  extent  the  general  feeling 
among  wage  earners  that  strikes  do  not  in  the  long  run  mean  much  real 
loss  of  time  to  the  men  and  that  such  loss  as  does  occur  is  in  the  end  more 
than  compensated  for  by  the  purposes  attained  by  means  of  the  strike. 
It  is  probably  futile,  therefore,  to  attempt  to  convince  workingmen  by 
the  citation  of  statistics  that  striking  is  inexpedient. 


STATE  REPORTS  ON  STRIKES  AND  LOCKOUTS 

Many  states  have  bureaus  or  departments  of  labor  or  conciliation, 
mediation,  and  arbitration  boards  which  are  concerned  with  industrial 
disputes.  Most  of  these  states  publish  annual  or  biennial  reports  on  these 
matters,  though  few  of  these  reports  are  really  statistical  in  character. 
Some  of  them  describe  in  detail  the  most  serious  or  important  cases 
handled,  and  give  an  alphabetical  list,  by  names  of  concerns,  of  other 
cases  in  which  the  board  or  department  has  been  interested.  In  such 
reports  the  lists  are  never  a  complete  record  of  all  the  strikes  in  the 
state,  and  they  cannot  be  used  for  statistical  purposes. 

In  a  few  states,  notably  Massachusetts  and  New  York,  the  depart- 
ments of  labor  or  boards  of  arbitration  publish  detailed  statistics  of 
strikes  each  year.  These  are  not  always  comparable  with  the  statistics  of 
the  United  States  Bureau  of  Labor  Statistics,  however,  as  the  fiscal  year 
is  used  in  some  cases  instead  of  the  calendar  year,  or  they  may  lump 
strikes  and  lockouts  together  and  use  a  very  different  classification  of 
industries.  A  brief  discussion  of  the  statistics  of  one  of  these  states  will 
indicate  what  can  be  obtained  from  the  best  of  these  state  reports. 

New  York.1 — The  third  deputy  commissioner  in  charge  of  the  Bureau 
of  Mediation  and  Arbitration  reports  the  following  record  of  "  disputes  " 
for  the  fiscal  year  ending  June  30,  1918,  and  for  the  three  preceding  years: 

1  State  of  New  York,  Annual  Report  of  the  Industrial  Commission,  1918.  New 
York  State  Department  of  Labor.  1919. 


312 


WASTE  IN  INDUSTRY 


COMPARISON  OF  DISPUTES,  1915-1918 


1915 

1916 

1917 

1918 

Number  of  strikes  and  lockouts  
Employees  involved  directly  
Employees  involved  indirectly  

104 
53,855 
2,407 

328 
222,325 
31.629 

234 
144,951 
18,376 

265 
83,650 
6,355 

Aggregate  days  of  working  time  lost  .  . 

868,838 

9,581,163 

2,600,335 

1,519,884 

It  is  interesting  to  note  that,  according  to  the  United  States  Bureau 
of  Labor  Statistics,  there  were  the  following  number  of  disputes  (strikes 
and  lockouts)  in  New  York  State:  1916,  592;  1917,  711;  1918,  683. 
These  figures  are  for  the  calendar  year  and  are  therefore  not  directly 
comparable;  but  it  is  perfectly  apparent  that  the  state  report  falls  far 
short  of  covering  all  disputes,  though  it  may  include  the  most  important 
ones. 

This  report  also  contains  a  detailed  analysis  of  the  figures  for  1917 
and  1918,  "  trades  affected,"  "  principal  cause  or  object  of  disputes," 
"  results  of  disputes,"  and  "  methods  of  settlement."  It  is  interesting 
to  note  that  there  were  no  sympathetic  strikes  in  either  of  these  years, 
which  is  further  evidence  of  the  relative  insignificance  of  this  class  of 
strikes. 

The  most  significant  thing  about  this  record  of  disputes  is  the  serious- 
ness of  the  disputes  in  1916  as  indicated  by  aggregate  lost  time.  This 
table  indicates  also  a  small  increase  in  the  number  of  strikes  in  1918 
(July  1,  1917  to  June  30,  1918)  which  nearly  coincides  with  the  first  year 
that  this  country  was  in  the  War;  but  it  is  apparent  that  these  disputes 
were  not  serious  ones  and  were  of  short  duration,  because  the  number 
of  persons  involved  and  the  days  of  lost  time  were  relatively  small. 

The  deputy  commissioner  lays  great  stress  upon  the  serious  loss  to 
the  men  and  to  the  community  as  indicated  by  the  days  of  working  time 
lost,  particularly  in  1916.  Indeed  there  were  serious  losses;  but  they 
represent  only  one  day  per  capita  for  the  entire  population  of  the  state, 
and  about  two  days  each  for  those  classed  by  the  United  States  Census 
as  gainfully  employed  in  that  state.  The  average  per  wage  earner  in  the 
state  may  be  estimated  for  that  year  at  about  2.6  days,  while  the  average 
loss  per  person  on  strike  or  thrown  out  of  work  by  reason  of  disputes  was 
32.7  days.  These  were  indeed  heavy  losses,  particularly  to  those  involved 
in  the  disputes,  if  they  came  out  of  the  time  when  these  people  would  other- 
wise have  been  employed;  but  it  should  be  noted  that  at  this  time,  July 
1,  1915,  to  June  30,  1916,  industry  had  not  fully  recovered  from  the  seri- 
ous depression  which  followed  the  outbreak  of  the  war  in  Europe  and 


STRIKES  AND  LOCKOUTS  IN  THE  UNITED  STATES  313 

which  caused  an  unusual  amount  of  unemployment  during  the  winter  of 
1914-1915. 

How  much  of  this  lost  time  was  in  seasonal  and  irregular  trades  cannot 
be  determined  from  the  1918  report;  but  it  may  be  approximately  esti- 
mated on  the  basis  of  the  detailed  figures  for  1917  which  are  given  in  this 
report.  According  to  these  figures,  32%  of  the  lost  time  was  in  the 
building  trades  and  the  clothing  industry. 

CONCLUSION 

It  is  clear  that  there  are  no  statistics  available  for  the  past  fifteen 
years  that  cover  a  sufficient  period  of  tune  or  a  wide  enough  range  to 
render  detailed  comparisons  with  the  period  1881  to  1905  safe  or  even 
possible  in  many  particulars. 

Such  comparisons  as  can  be  made,  however,  indicate  that  a  very 
large  proportion  of  strikes  in  recent  years  have  occurred  in  seasonal  and 
irregular  occupations,  such  as  the  clothing  industry,  coal  mining,  and  the 
building  trades,  in  which  employees  do  not  ordinarily  work  much  more 
than  two-thirds  of  the  time. 

It  may  be  questioned  whether  such  detailed  studies  as  were  made  by 
the  United  States  Bureau  of  Labor  down  to  1906  should  be  undertaken 
again  at  government  expense.  It  is  certain  that  no  private  organization 
could  afford  to  bear  the  cost  of  such  investigations. 

Statistics,  when  properly  interpreted,  do  not  support  the  popular 
belief  that  strikes  are  responsible  for  great  losses  in  earnings  to  wage 
earners  or  in  the  output  of  industry. 

The  strikes  that  have  seriously  affected  or  threatened  the  public 
welfare  and  the  ongoing  of  industry  are  such  strikes  as  those  in  the  steel 
and  coal  industries  in  1919,  or  such  as  have  been  imminent  at  times  on 
the  railroads  of  the  country.  England  has  been  menaced  by  strikes  of 
this  sort  several  times  since  the  close  of  the  War.  No  statistical  study 
of  strikes  in  the  past  would  be  of  any  use  as  a  means  of  showing  the  effects 
of  such  strikes  as  these,  and  none  would  be  necessary  in  any  case,  for 
it  is  perfectly  clear  that  they  would  lead  to  disastrous  consequences  to 
industry  and  to  the  general  welfare  which  would  be  out  of  all  proportion 
to  the  losses  in  wages  and  profits  of  those  directly  concerned  in  them. 
Such  strikes  must  be  prevented  if  it  is  possible  to  stop  them. 

Statistics  show  that  strikes  are  most  frequent  and  most  prolonged 
in  the  seasonal  and  irregular  occupations.  Attention  has  been  called  to 
the  probability  that  this  may  be  in  part  due  to  the  fact  that  the  ordinary 
penalty  for  striking,  namely,  loss  of  earnings,  is  not  effective  in  indus- 
tries where  workmen  are  normally  idle  about  one-third  of  the  time. 
Strikes  in  such  occupations  are  probably  due  also  to  the  difficulty  of  get- 


314  WASTE  IN  INDUSTRY 

ting  and  keeping  wage  rates  sufficiently  above  the  rates  in  more  regular 
trades  and  industries  to  enable  the  laborers  to  maintain  a  decent  standard 
of  living  throughout  the  year.  Whatever  the  reason  or  the  cause,  the 
remedy  is  to  stabilize  or  regularize  the  employment. 

Finally,  strikes  are  merely  symptoms  of  more  fundamental  maladjust- 
ments, injustices,  and  economic  disturbances  which  produce  unrest, 
discontent,  and  bitterness  among  the  ever-increasing  number  of  industrial 
workers.  Treating  symptoms  rarely  reaches  the  roots  of  the  disease. 
Suppressing  strikes  will  not  cure  social  unrest;  but  will  probably  increase 
it.  Strikes  are  always  regrettable;  but  not  always  reprehensible.  Until 
the  social  millennium  'is  attained,  they  will  continue  to  occur  and  will  be 
sometimes  necessary  both  as  a  direct  defense  against  injustice  and  oppres- 
sion and  as  the  only  way  of  compelling  the  public  to  give  its  attention  to 
hidden  evils  in  industrial  relations. 

C.    W.    DOTEN. 


CHAPTER  XIII 

THE  LEGAL  MACHINERY  FOR  ADJUSTING  LABOR  DISPUTES 
IN  THE  UNITED   STATES 

BY  JOHN  KOREN 

Variety. — American  legislation  for  the  settlement  of  labor  disputes  pre- 
sents almost  as  many  varieties  as  there  are  states.  The  nomenclature  of  the 
bodies  created  to  deal  with  controversies  between  employer  and  employee 
may  in  many  cases  be  the  same,  but  their  duties,  manner  of  appointment, 
etc.,  vary  in  a  confusing  manner.  About  the  only  consolation  to  be 
drawn  from  this  legislation  is  the  fact  that  the  need  for  it  is  recognized. 
The  following  tabular  exhibits  justify  this  generalization. 

Table  I  shows  by  type  the  American  statutes  relating  to  industrial 
arbitration.  Seven  of  the  states  have  laws  for  local  arbitration,  but  no 
permanent  agency  to  execute  them.  Two  states  legalize  permanent 
district  or  county  boards  established  by  private  parties.  Eight  states 
(Alaska  and  the  Philippines  are  not  included)  provide  for  arbitration  or 
conciliation  by  the  State  Commissioner  of  Labor  or  other  state  officials. 
In  twenty-seven  states  there  are  laws  creating  a  special  State  Board  or 
Commission  for  the  settlement  of  labor  disputes.  In  the  case  of  Kansas 
a  Court  of  Industrial  Relations  has  been  established,  with  very  broad 
powers,  which  is  without  a  counterpart  in  this  country.  Seventeen 
states  (Porto  Rico  is  not  included)  make  provision  for  local  boards  as 
well  as  for  bodies  with  state-wide  powers. 

Adequacy. — Table  II  shows  that  the  state  legislation  creating  machin- 
ery for  the  adjustment  of  industrial  disputes  is  active  in  eleven  states,  that 
is,  functions  with  more  or  less  success;  that  it  is  inactive  in  five  states;  and 
dormant  in  eighteen,  not  counting  Alaska,  the  Philippine  Islands  and  Porto 
Rico.  (In  eleven  states,  without  counting  the  District  of  Columbia  and 
Hawaii,  no  legislation  worthy  of  the  name  exists.)  The  figures  carry 
their  own  comment.  It  is  a  fair  statement  that  for  the  country  as  a 
whole  the  bodies  for  the  adjustment  of  industrial  disputes  are  not  func- 
tioning. It  will  also  be  noted  that  several  highly  important  manufacturing 
states  are  included  in  the  lists  of  states  with  inactive  or  dormant  legislation. 

A  study  of  how  the  legislation  works  in  states  in  which  it  is  reported 
to  be  active  would  require  a  long  and  intimate  investigation  quite  beyond 
the  limitations  set  for  the  inquiry  into  industrial  waste.  But  it  is  not 
hazardous  to  remark  that  in  no  state  has  the  existing  machinery  shown 

315 


316 


WASTE  IN  INDUSTRY 


itself  capable  of  meeting  a  great  crisis, 
new  to  be  included  in  this  comment. 


The  experience  in  Kansas  is  too 


TABLE  I 

American  Statutes  Relating  to  Industrial  Arbitration:  by  type,  as  follows: 
I.  Laws  providing  for  local  arbitration  with  no  permanent  agency  therefor. 
II.  Laws  providing  for  permanent  district  or  county  boards  established  by  private 
parties. 

III.  Laws  providing  for  arbitration  or  conciliation  through  the  agency  of  State  Com- 

missioners of  Labor  (or  other  State  officials). 

IV.  Laws  providing  for  a  special  State  Board  or  Commission  for  the  settlement  of 

industrial  disputes. 
V.  Laws  providing  for  local  boards,  as  well  as  statewide  bodies. 

I 

Alaska 
Indiana 
Iowa 
Nevada 
New  Jersey 
Texas 
Washington 


II 

III 

IV 

V 

Iowa 

Alaska 

Alabama 

Alabama 

Kansas 

Arkansas 

California 

California 

Colorado  * 

Colorado 

Colorado 

Georgia 

Connecticut 

Kansas 

Maryland  * 

Idaho 

Maine 

Missouri  * 

Illinois 

Maryland 

Nevada 

Kansas 

Massachusetts 

Philippine  Islands 

Louisiana 

Michigan 

South  Dakota 

Maine 

Minnesota 

Washington 

Maryland 

Montana 

Massachusetts 

Nebraska 

Michigan 

New  York 

Minnesota 

Ohio 

Missouri 

Oregon 

Montana 

Pennsylvania 

Nebraska 

Porto  Rico 

New  Hamsphire 

Rhode  Island 

New  York 

South  Carolina 

Ohio 

Oklahoma 

Oregon 

Pennsylvania 

Porto  Rico 

Rhode  Island 

South  Carolina 

Utah 

Vermont 

Wisconsin 

*  Old  law,  now  in  disuse,  but  still  on  statute  books.     Not  included  in  other  tables. 

(In  Colorado,  Idaho,  Illinois,  Maryland,  Massachusetts,  New  York,  Ohio,  Pennsyl- 
vania, Philippine  Islands,  Rhode  Island,  and  Utah,  mediation  and  arbitration  is  carried 
on  as  a  part  of  the  central  department  of  labor,  under  various  names.) 

Whether  adequate  bodies  can  be  created  for  the  purpose  in  hand  is 
another  question.  The  need  of  properly  constituted  labor  courts,  or  agen- 
cies called  by  some  other  name,  is  generally  agreed  upon,  but  how  they 
should  be  constituted,  the  jurisdiction  that  should  be  given  them,  etc,, 


LEGAL  MACHINERY  FOR  ADJUSTING  DISPUTES 


317 


remain  to  be  determined.  Meanwhile,  in  view  of  the  obvious  industrial 
waste  resulting  from  labor  disputes,  it  is  certainly  not  an  over-statement 
to  say  that  one  of  the  urgent  measures  for  its  elimination  is  to  acquire  the 
wisdom  to  create  and  operate  successfully  agencies  endowed  with  sufficient 
power  and  wisdom  to  stop  the  thousands  of  destructive  and  needless 
controversies  over  labor  questions. 

The  remaining  tables  show  numerous  details  of  legislation  in  regard 
to  the  various  bodies  intended  to  function  in  labor  disputes.  They  help 
to  illustrate  the  helter-skelter  character  of  existing  laws,  which  in  large 
part  seems  to  result  from  accident,  for  there  is  little  evidence  that  these 
laws  are  based  upon  a  knowledge  of  requirements  and  the  best  experience. 
No  extended  analysis  of  these  tables  is  in  order  here;  they  are  capital 
evidence  of  the  ineptitude  of  our  legislation  and  point  to  conditions  that 
spell  constant  waste  and  grave  dangers  likely  to  arise  at  any  moment.1 

TABLE  II 

AMERICAN  STATE  LEGISLATION  FOR  THE  ADJUSTMENT  OP  INDUSTRIAL  DISPUTES 
Classified  according  to  activity  of  the  body  created  for  this  purpose. 


Active 

Inactive 

Dormant 

No  Legislation 

Colorado 

Iowa 

Alabama 

Arizona 

Illinois 

Maine 

Alaska 

Delaware 

Kansas 

Nebraska 

Arkansas 

District  of  Columbia 

Maryland 

Porto  Rico 

California 

Florida 

Massachusetts 

Washington 

Connecticut 

Hawaii 

Minnesota 

Wisconsin 

Georgia 

Kentucky 

New  York 

Idaho 

Mississippi 

Ohio 

Indiana 

New  Mexico 

Oregon 

Louisiana 

North  Carolina 

Pennsylvania 

Michigan 

North  Dakota 

Utah 

Missouri 

Tennessee 

Montana 

Virginia 

Nevada 

West  Virginia 

New  Hampshire 

New  Jersey 

Oklahoma 

Philippine  Islands 

South  Carolina 

Texas 

Vermont 

(Wyoming  possesses  a  Constitutional  provision  commanding  the  State  Legislature 
to  create  an  agency  for  the  adjustment  of  industrial  disputes,  but  no  statute  has  ever 
been  passed  to  carry  out  such  provision.) 

(The  provisions  of  Rhode  Island  and  South  Dakota  are  too  recent  to  admit  of  classi- 
fication here.) 

1  The  tables  have  been  prepared  by  Mr.  Carl  I.  Wheat. 


318 


WASTE  IN  INDUSTRY 


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li 

11 

p 


IS 


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till 

S1|5 


T3^  g    « 
51    °^ 
^ 


s . 


~.?I13?J 

iioilro 

s  o  •§  -g  • 


320 


WASTE  IN  INDUSTRY 


TABLE  IV.— STATUTORY  PROVISIONS 


• 

* 

I  ii 

I  1 

1  L* 

i  ;i 

1  t 

e 

t 

M 

I 

j 

1 

1 

! 

1 

| 

-2 

1 

I 

— 

1 

I 

Loulslai 

Maine 

GENERAL 

2 

Local  or  temporary  boards  

X 

X 

X 

x 

x 

x 

x 

z 

8 

Governor  or  State  Labor  Commission  given  duty  to 

Intervene  

X 

x 

X 

4 

Constitutional  provision  for  Industrial  arbitration  .  .  . 

x 

MAKE-UP  OF  PERMANENT  BOARDS  OR  COMMISSIONS 

5 

Number  of  members  

8 

•^ 

gi 

8 

2"; 

2* 

•J 

5 

8 

0 

Appointed  by  governor  by  and  with  advice  and  con- 

sent of  the  Senate  

x* 

X" 

X 

x 

X' 

X 

x 

x 

7 

Removable  by  governor  

2 

8 

Term  of  office  —  years  

2 

1 

0 

2 

•j 

8 

8 

e 

To  contain  a  representative  of  employers  

X 

X 

X* 

x 

X' 

x 

11 

To  contain  a  neutral  member  

x 

\11 

X 

X 
X 

12 

No  more  than  two  members  to  belong  to  the  same 

political  party  

X 

x1'- 

gll 

18 

Previous  residence  In  the  state  required  —  years  

2 

14 

To  be  competent  persons  

X 

X 

x 

15 

Not  to  have  occupation  or  business  interfering  with 

duties  on  the  commission  

10 

To  devote  entire  time  to  duties  on  the  commission.  . 

x 

17 

Neutral  member  to  be  chairman  

x 

\ 

18 

Neutral  member  to  be  chosen  by  the  other  members  .  . 

X 

X 

10 

If  no  agreement  within  specified  time,  governor  to 

appoint  neutral  member  

X 

X 

20 

State  Labor  Commissioner  or  other  state  official  to  be 

a  member  

MAKE-UP  OF  TEMPORARY  OR  LOCAL  BOARDS 

21 

Number  of  members  

8 

8 

:i 

8 

•~> 

8 

22 

Mutually  agreed  on  by  the  parties 

29 

Appointed  by  governor  or  other  official  

x 

X 

X 

x 

\ 

M 

One  or  more  selected  by  employer  (or  to  be  employer) 

x 

X 

x 

.-. 

x- 

X 

2fl 

One  or  more  selected  by  employees  (or  to  be  employees) 

x 

X 

x 

x- 

fctt 

X 

20 

Unorganized  employees  to  have  opportunity  In  choice 

X 

27 

One  or  more  neutral  members  

I 

X 

x 

X 

X 

28 

Neutral  members  to  be  selected  by  the  "interested" 

parties  

X 

X 

X 

x 

x 

20 

If  no  agreement  on  neutral  member,  State  Board  or 

other  official  to  appoint  same  

w 

30 

Neutral  member  to  be  chairman  

X 

z 

COMPENSATION 

Permanent  Boards 

81 

Yearly  salary 

x 

x 

82 

Payment  by  number  of  days  actually  served  

X 

X 

X 

x 

X 

88 

Expenses  allowed  

-X 

X 

x 

* 

x 

* 

* 

Temporary  or  local  boards 

M 

Compensation  provided  

x 

X 

x 

X 

x 

I 

85 

Expenses  allowed  

x 

X 

M 

Source  of  Compensation 

89 
88 

Partly  by  state  and  partly  by  local  authorities  
All  expenses  to  be  met  by  the  parties  

X 

X 

MEDIATION  OR  CONCILIATION  (STATE  BOARDS) 

Jurisdiction 

Scope 

M 

Any  Industrial  dispute  (numbers  refer  to  number  of 

persons  who  must  be  Involved)  •  

X 

x-'! 

x-1 

X 

x 

X 

X-4 

-,(}-" 

26 

M 

10 

40 

Disputes  not  subject  to  suit  at  law  or  In  equity  

x 

x 

41 

Where  stoppage  has  begun  or  Is  Imminent  

X 

X 

x 

X 

x 

1 

2 

3 

4 

5 

r, 

7 

8 

9 

1(1 

11 

12 

13 

14 

For  footnotes,  see 


LEGAL  MACHINERY  FOR  ADJUSTING  DISPUTES 


321 


FOR  ADJUSTING  LABOR  DISPUTES 


1 

10 

17 

IS 

19 

20 

21 

22 

23 

24 

25 

20 

27 

28 

29 

30 

31 

32 

33 

34 

35 

36 

37 

38 

39 

4( 

41 

e 

I 

Massachusetts 

Michigan 

Minnesota 

Missouri 

| 

Nebraska 

Nevada 

New  Hampshl 

^ 

New  York 

O 

Oklahoma 

O 

| 
1? 

Philippine  Is. 

Porto  Rico 

Rhode  Island 

I 

South  Dakota 

i 

2 

j 

Washington 

f 

Wyoming  • 

United  States 

| 

x 

x 

x 

x 

1 

I 

x 

x 

X 

x 

x 

x 

2 

a 

x 

x 

X 

X'- 

4 

a 

2 

8 

a 

8 

a 

3 

81 

33 

7< 

8 

' 

8« 

5 

5 

8 

33 

3 

3 

3 

5 

X7 

3 

x 

2 

3 

X 

2 

X 

2 

8 

X 

B 

I 

4 

4 

6 

a 

x 
4 

3 

3 

x 
7 

7 

S 

x 

x 

I 

X 

x 

X 

X 

Xs 

x" 

XK 

x1* 

X 

x 

x 

9 

X 

X 

x 

x 

X 

X 

X 

X8 

X9 

X« 

X* 

X 

x 

X 

10 

X 

x 

X 

X 

X 

X1 

X 

X 

X1 

X 

x 

X 

I  i 

X 

z 

19 

X' 

X1 

18 

X 

14 

X 

x 

15 

x  b 

Iff 

x 

X 

17 

1 

X 

x 

X 

X 

18 

X 

X 

X 

X 

X 

19 

X 

X 

20 

8 

4 

8 

8 

g 

ft 

3 

8 

8 

3 

3 

B 

3" 

(or 

21 

or 

or 

or 

or 

or 

B 

x 

X 

x 

X 

x 

x 

22 

X 

v 

x 

1 

* 

x"> 

x 

X 

23 
24 

X 

I 
x 

X 

x 

X 

x 

X 

25 

X 

X 

x 

X 

X 

X 

x 

29 

X 

X 

X 

X 

X 

X 

X 

X 

U 
32 

X 

X 

X 

X 

X 

x 

X 

X 

X 

X 

X 

X 

33 
34 

X 

86 

25 

S» 

10 

10 

20 

X« 
X 

X 
X 

10 

I 

X 

50 

X 

X 

X 
X 

10 

10 

x 

37 
89 

x 

x 

40 

* 

x 

4 

16 

17 

IS 

19 

80 

21 

H 

28 

2! 

25 

M 

27 

28 

-1 

30 

11 

12 

33 

34, 

35 

M 

37 

88 

89 

40 

41 

pages  328,  329  and  330. 


322 


WASTE  IN  INDUSTRY 

TABLE  IV. — STATUTORY  PROVISIONS 


1 

2 

8 

4 

5 

6 

7 

8 

1 

10 

n 

19 

u 

14 

1 

, 

Alaska 

Arkansas 

California 

| 

Connecticut 

a 

~ 

j 

Indiana 

t 

| 

Louisiana 

| 

42 

How  Obtained 
On  application  OT  "submission"  by  one  or  by  both 

48 

•M 

On  advice  or  request  of  governor  of  the  state  

X 

45 

On   notice  from  specified   sources   (local  or  labor 

„ 

V-'J 

'1  0 

47 

48 
40 
50 

Action  mandatory  whenever  board  learns  of  dispute. 

Procedure 
Body  designated  or  agent,  attempts  mediation  
Proceeds  to  locality  of  dispute  

X 

I 

I 

X 

X 

X 

X 
X 

» 

X 

X 

X 

x 

51 
52 

Makes  decision  (Numbers  refer  to  the  number  of  days 
within  which  decision  or  report  must  be  made)  .... 
Advises  parties  what  they  should  do  
If  mediation  is  unsuccessful,  attempt  made  to  procure 

10 

21 

X 

X 

X 

54 

Ti 

If  parties  fall  to  keep  promises,  may  cease  action  until 
agreement  

INVESTIGATION  (STATE  BOARDS) 
Jurisdiction 
Scope 

X 

X 

66 

Any  Industrial  dispute  (Numbers  refer  to  number  of 

OH 

r.7 

\ 

I 

68 
50 

Where  mediation  has  failed  or  arbitration  is  refused.  .  . 
How  Obtained 

X 

X 

00 

I 

63 

IV 

On  certain  Information  as  specified  

X 

04 

66 
66 

07 
68 

69 

70 
71 

Action  discretionary  

Procedure 
Body  designated,  or  agent,  Investigates  dispute  
Proceeds  to  locality  of  dispute  
Fixes  responsibility  
Makes  decision  (Numbers  refer  to  the  number  of  days 
within  which  decision  or  report  must  be  made)  .... 
Report  to  be  made  public  (usually  with  recommenda- 
tion for  fair  settlement)  
Miscellaneous  powers  of  Investigating  body46  

X 
10 

X 

x« 

X 
X 

X 

X 

X 
X 

X 

X 

X 

V 

X 

X 

X 

x 

72 

73 

ARBITRATION  (STATE  BOARDS) 
Jurisdiction 
Scope 
Any  Industrial  dispute  (Numbers  refer  to  number  of 
persons  who  must  be  Involved)  

X 

M 

85 

10 

X 

74 

How  Obtained 
Where  both  parties  Join  In  "submission"  of  case  to  ar- 

75 

Submlsslon  to  be  In  writing  

x 

X 

X 

X 

X 

77 
78 

79 

Statement  of  facts  of  the  dispute  
Agreement  to  remain  In  action  without  strike  or  lock- 
out until  award  (Numbers  show  number  of  days 
this  promise  runs)  
Agreement  to  abide  by  award  

X 

X 
X 

X 
X 

X 

X 

10 

X 

z 

X 

21 

1 

2 

8 

4 

5 

G 

7 

B 

e 

10 

11 

12 

13 

14 

For  footnotes,  see 


LEGAL  MACHINERY  FOR  ADJUSTING  DISPUTES 
FOR  ADJUSTING  LABOR  DISPUTES — Continued 


323 


15 

i<; 

7 

u| 

19 

20 

21 

2 

2, 

24 

25 

36 

27 

28 

2!) 

to 

a  i 

52 

ia 

14 

15 

86 

37 

3.S 

88 

40 

41 

Maryland 

Massachusetts 

Michigan 

Minnesota 

!?, 

I 

a 

\ 

1 

£ 

New  Hampshire 

New  Jersey 

I 
M 

| 

3 

0 

Oregon 

cl 

H 
d 

3 
fi 

£ 

H 
a 

— 

Porto  Rico 

Rhode  island 

South  Carolina 

1 

5 

s 

•2 

| 

| 

> 

1 

•; 

! 
1 

i 

Wyoming 

United  States 

y 

B 

x 

x 

• 

43 

x 

x 

X 

X 

X 

x 

x 

x 

44 

x 

Z 

x 

z** 

x 

S«" 

x-9 

45 

x 

x 

X 

gM 

x 

x 

z 

x 

46 

X 

X31 

47 

48 

x 

X 

x:i:l 

10 

X 

X 

X 

X 

lM 

x 

X 

X 

Z 

4!) 

60 

51 

X 

X 

52 

X 

X 

Z 

X 

x 

X 

z« 

x 

53 

X 

X 

64 

^ 

Z 

X 

X 

Z 

Z 

X 

X 

66 

X 

Z*T 

Z* 

Z 

z" 

,5:=9 

66 

x 

X4U 

x" 

57 

Z 

X 

Z 

z» 

X 

z 

I 

68 

Z 

x 

x 

59 

x 

2 

Z 

z 

X 

X 

60 

z 

Z»« 

X 

61 

Z 

Z 

02 

X 

68 

X 

Z 

Z 

z 

Z 

X 

04 

z 

x:i 

X 

X 

X 

x3 

z 

z 

z 

X 

X 

z 

66 

X 

Z4* 

x 

x 

Z 

00 

X 

X 

z 

X 

Z 

z 

07 

X 

X 

5 

X 

x 

x 

z 

Z 

z 

X 

x 

X 

z 

68 

z 

X 

X 

X1 

X 

X 

x 

z 

x 

x1 

z 

Z 

60 

z 

X1 

x' 

Z*° 

x-'1 

70 

71 

2 

u 

ao« 

1( 

25 

Id'' 

10' 

72 

X 

x 

z" 

73 
74 

Z* 

x 

2 

z 

X 

X 

28 

Z 

z 

X 

Z 

X;'7 

10 

Z 

X" 
X 

31 

75 
70 

77 

71 

Z 

z 

x 

x 

7'J 

10 

1( 

17 

18 

19 

20 

2 

S3 

23 

24 

25 

2(i 

27 

28 

28 

30 

81 

32 

33 

M 

3ft 

3(i 

37 

88 

89 

40 

41 

pages  328,  329  and  330. 


324 


WASTE  IN  INDUSTRY 

TABLE  IV. — STATUTORY  PROVISIONS 


™ 

~ 

1 

I 
5 

2 
< 

Arkansas 

3. 
I 

Colorado 

1 

Georgia 

1 

EH 

Indiana 

1 

3 

| 

Maine 

so 

SI 

83 

Procedure 
Designated  body  examines  or  "arbitrates"  dispute.  . 
Proceeds  to  locality  of  dispute  

vCl 

z 

z 

X 

gH 

H 

Award 
Number  of  days  within  which  award  must  be  made 

10 

M 

SB 

Hfi 

To  state  facts  of  case  and  findings  relating  thereto  .  . 

X 

S7 

n 

M 

Binding  on  parties  who  Join  In  submission  
Number  of  months  award  will  remain  binding  
May  be  abrogated  by  the  parties  by  notice  (Numbers 
show  number  of  days'  notice  Is  required)  
To  be  made  public  

0 

KP 

X 

X 

a 

GO 

Z 

0 
60 

rn 

Disposition  of  Copies  of  Award 

•»•> 

93 
M 

oi 

To  governor  (or  other  state  officials)  
To  local  officials  (clerk  of  local  court,  mayor,  etc.)  .  .  . 

General 

X 

X 
X 

I 

'.Hi 
97 

Some  methods  of  enforcement  by  courts  provided  .  .  . 

STATUTORY  PROVISIONS  FOR  LOCAL  BOARDS 
Powers** 
All  powers  of  state  body  In  the  particular  case  before 

X 

X 

OS 

Exclusive  jurisdiction  over  this  dispute,  but  may  ask 

09 

Jurisdiction 
Scope 
Any  Industrial  dispute  (Numbers  refer  to  number  of 

V67 

HP 

KP 

10 

100 

101 
10-' 

Where  parties  desire  local  rather  than  state  action.  .  . 
How  Obtained 

X 

z 

nn 

Submission  to  Contain 

1(14 

Signed                                   

I 

10r) 

Kl.i 
107 
10S 
109 

1  10 

Agreement  not  to  strike  or  lockout  pending  award.  .  . 
Agreement  to  abide  by  award  
Agreement  that  award  shall  be  "  final"  
Agreement  re  length  of  time  award  shall  be  In  force.  . 

Procedure 

X 

X77 

111 
1  11' 

Members  sign  consent  to  act  or  "acknowledgment".. 

i  n 

114 

1  1  ri 

z 

z 

1  Hi 

gH 

1  17 
1  I* 

Decisions 
Number  of  days  within  which  decision  must  be  made  . 

191 

10 

1  I'l 

T 

x 

120 

To  be  signed  

Z 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

n 

12 

Hi 

14 

For  footnotes,  see 


LEGAL  MACHINERY  FOR  ADJUSTING  DISPUTES 

FOR  ADJUSTING  LABOR  DISPUTES — Continued 


325 


"1 

in 

7 

B 

1!) 

80 

31 

33 

23 

34 

M 

-| 

37 

88 

89 

M 

M 

a 

33 

M 

35 

36 

37 

38 

yj 

40 

41 

a 

J 

a 

T. 

Maryland 

Massachuset 

I 

Minnesota 

I 

I 

\ 

y. 

New  Hamps] 

1 
k 

New  York 

o 

3 

5 

f 

Philippine  Is 

1 

Rhode  Islanc 

South  Caroll 

g 

1 

1 

l 

\ 

1 

I 

Wyoming 

United  State 

8 
1 

x 

X 

X 

x- 

X 

x 

80 

2 

X 

X" 

81 

x 

x 

1 

H_ 

x- 

88 

5 

7" 

10 

88 

x 

x 

84 

x 

x 

85 

X 

80 

X 

X 

X''" 

X 

87 

a 

B 

a 

B 

6 

88 

in 

60 

50 

BO 

BO 

89 

X 

x 

X 

X 

x 

90 

x 

t 

X 

x 

x 

91 

X 

x 

92 

X 

93 

X 

* 

x 

94 

X 

X 

X 

X 

96 

X 

X 

X 

98 

X 

X 

Jt 

X 

X 

97 

X 

X 

X 

9S 

H 

X 

X 

x 

I 

* 

X 

X 
X 

X 

* 

X 

X 
X 

x41 

X 

99 
100 
101 

x 

K 

x 

X 

X 

X 

X 

X 

103 

I 

x 

x 

35 

104 

X 

X 

105 

X 

X 

100 

X 

x7 

x7 

X7 

X7'1 

X 

X 

x7 

107 

X7 

x 

35 

x77 

IDS 

X 

I 

X 

109 

x 

x 

X 

X 

110 

X 

X 

x 

X 

x 

111 

X 

112 

X7'- 

X 

X' 

x 

x 

113 

X 

X 

x 

114 

X 

V 

X 

X 

X 

115 

x 

110 

3 

1 

1 

10 

11 

5 

10 

10° 

117 

I 

118 

X 

X 

119 

X 

X 

120 

15 

14 

17 

18 

19 

20 

81 

33 

M 

M 

85 

88 

27 

88 

M 

80 

31 

3. 

33 

34 

35 

36 

37 

38 

39 

40 

41 

pages  328,  329  and  330. 


326 


WASTE  IN  INDUSTRY 

TABLE  IV. — STATUTORY  PROVISIONS 


13 

1 

I 

i 

I 

«3 

<j 

California 

Colorado 

Connecticut 

5 

| 

•c 

1 

Indiana 

p 

1 

Louisiana 

I 

1 

s 

Decisions  —  continued 

122 

T>3 

Must  be  confined  to  the  dispute  directly  at  Issue.  .  .  . 

z 

gd 

* 

124 

Number  of  months  It  will  remain  In  force  
Copies  to: 

12 

12" 

138 

127 

128 

One  to  local  official  (clerk  of  local  court,  mayor,  etc.) 
One  to  governor  or  state  board  or  other  official  

Enforcement 

X 
X 

X 
X 

X 

X 

129 
130 

Courts  to  enforce  decision  on  petition  of  Injured  party 

Expenses  (and  Salary  of  Members  of  Board) 
Number  of  dollars  per  member  per  day  of  actual 

4 

X 

10 

1  0 

5 

0 

X 

131 

Necessary  traveling  and   other  expenses  of  board 

t 

I 

132 

To  be  paid  by  the  parties  

X»> 

X 

134 
135 

To  be  paid  by  the  local  municipality  or  county  

STATUTORY   PROVISIONS   AS   TO   WITNESSES,   EXPERT 
ASSISTANTS,  AND  REPORTS 
General  Powers 
State  Boards 
May  Subpoena  Witnesses 

Y 

I 

X 

13(i 

In  mediation  

I 

I 

X 

137 

x 

\ 

I 

138 

I 

139 

May  Compel  Production  of  Books  and  Papers 
In  all  cases                               .           .           

T 

•K 

I 

V 

141 
14'' 

In  Investigation  

X 

143 
144 
145 

Local  Boards 
May  subpoena  witnesses  
May  compel  production  of  books  and  papers  
Same  powers  as  state  body  for  the  particular  dispute 

T 

X 
X 

14(i 

X 

147 

State  and  Local  Boards 
May  Invoke  court  aid  In  enforcing  above  powers".  .  . 

Service  of  Process 

X 

X 

z 

t 

X 

X 

' 

149 
150 

By  appointee  of  board  

Subpoenas  May  Issue  from 

X*8 

X 

I 

jH 

X 

X 

1  51 

I 

15'' 

T 

t 

X 

X 

X 

153 

Oaths  May  Be  Administered  by 

T 

gW 

X 

151 

X 

X 

X 

1  55 

Witness  Fees 
Same  as  for  witnesses  In  a  court  of  first  Instance  of  the 

X 

X 

1M 

157 

Number  of  dollars  per  day  attended  
Expenses  of  travel  to  be  paid  

9 

1 

I 

3 

4 

5 

B 

7 

8 

'.> 

10 

11 

12 

13 

14 

For  footnotes,  see 


LEGAL  MACHINERY  FOR  ADJUSTING  DISPUTES 
FOR  ADJUSTING  LABOR  DISPUTES — Continued 


327 


"I 

16 

17 

IS 

19 

20 

21 

22 

-a 

21 

25 

20 

27 

28 

29 

80 

81 

32 

88 

84 

35 

86 

37 

88 

39 

40 

41 

Maryland 

Massachusetts 

Michigan 

Minnesota 

Missouri  | 

i 
§ 

a 

a 

% 

1 

% 

New  Hampshire  | 

New  Jersey 

>H 
I 

, 

I  Oklahoma 

I 

1 

f' 
I 

Philippine  Is. 

I  Porto  Rico 

1 

1 
£ 

Z 

|  South  Carolina 

5 

3 

i 

, 

| 

Vermont 

1  Washington 

£ 
^ 

Wyoming 

United  States 

1 

x 

X 

121 

x3  '• 

xsi 

x 

122 

123 

3  si; 

124 

z 

X 

X 

Z 

z 

X 

x 

125 

X 

1 

x 

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x 

X 

X 

\v; 

120 

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12S 

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129 

5 

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130 

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x 

131 

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\95 

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135 
130 
137 
138 

139 
140 

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z 

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X1M 

S1M 

z 

x 

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157 

15 

10 

17 

18 

1!) 

20 

21 

22 

2, 

24 

25 

88 

27 

28 

29 

30 

31 

32 

33 

84 

35 

30 

37 

88 

39 

40 

41 

pages  328,  329  and  330. 


328 


WASTE  IN  INDUSTRY 

TABLE  IV. — STATUTORY  PHOVISIONS 


, 

2 

3 

4 

5 

8 

7 

8 

9 

10 

11 

12 

18 

1  1 

8 

•c 

Alabama 

< 

Arkansas 

U 

Colorado 

Connecticut 

4 
g 

£ 

0 

| 
1 

I 

- 

Indiana 

« 

E 

Kansas 

| 

! 

9 
3 

1  If 

Fees  Paid  by 

KIM 

15!) 

Parties  

100 
161 

102 

io:j 
164 

105 

100 

Local  municipality  or  county  

Expert  Assistants  (State  Boards  Only) 
May  be  employed  on  request  by  parties  
May  be  employed  by  the  board  on  own  motion  
Expenses  paid  by  the  state  

Reports  Required  of  State  Boards 
Annual  to  governor  
Annual  to  legislature  
Biennial 

z 

X 

I 

X 

107 

108 

Ot  each  case  to  legislature  
To  Include  recommendations  tor  legislation  

z 

gill 

X 

X 

1 

2 

8 

4 

5 

6 

7 

8 

9 

10 

11 

U 

18 

14 

(Action  charted  refers  only 
ibers 


FOOTNOTES  TO 

1  Body  entitled  "Court  of  Industrial  Relations"  (Statute  of  Jan.,  1920). 

2  This  provision  was  never  compiled  with  by  legislation  of  any  sort. 

3  Industrial  conciliation  only  a  part  of  the  duties  with  which  this  body  Is  charged, 
to  this  feature.) 

4  In  addition  to  members  shown  above,  the  Board  Includes  two  farmers,  to  complete  the  total  of  seve 
required. 

6  Advice  and  consent  of  the  Senate  not  required. 
•  Applies  to  only  two  of  the  three  members. 

7  Consent  of  Senate  necessary  for  removal. 

8  To  contain  two  representatives. 

'  Employer  or  employee  members  to  be  appointed  from  lists  submitted  for  the  purpose. 

10  A  neutral  member  to  be  the  Judge  of  the  District  Court,  Is  provided  only  In  cases  of  arbitration. 

11  The  neutral  member  Is  to  be  the  State  Commissioner  of  Labor. 

12  One  to  be  from  party  receiving  highest  number  of  votes  at  last  election,  one  from  next  highest  party,  and  one 
from  a  "bona  fide  labor  organization." 

13  No  more  than  one  member  to  belong  to  the  same  political  party. 

14  Members,  except  farmers,  must  have  been  engaged  In  Industrial  work  In  the  state  for  at  least  three  years  pre- 
ceding appointment. 

15  Citizenship  of  Porto  Rico  and  of  the  United  States  Is  required. 

18  Only  the  "Commissioner  of  Mediation  and  Conciliation"  gives  full  time  to  this  work,  the  other  member 
receiving  pay  per  number  of  days  actually  served. 

17  In  addition,  the  State  Commissioner  of  Labor  acts  as  Chairman  or  Moderator,  without  a  vote. 

18  Two  to  be  selected. 

19  If  no  agreement  Is  reached,  the  submission  to  arbitration  Is  recalled. 

20  No  members  to  be  directly  connected  with  case,  but  some  members  to  have  knowledge  of  the  Industry  In  which 
dispute  arises.     State  Board  members  or  other  officials  to  be  members,  and  if  appointment  of  third  member  becomes 
necessary,  the  Chief  of  Bureau  deputizes  some  member  of  his  staff  for  the  purpose. 

21  Only  true  where  no  agreement  is  reached  on  neutral  member.  In  which  case  the  Chief  of  the  Bureau  of  Media- 
tion, etc.,  becomes  such  member  and  Is  Chairman.  • 

22  Applies  to  local  board  compensation. 

23  Only  disputes  regarding  wages,  hours,  and  conditions  of  employment. 

24  "Whenever  practicable." 

25  If  thought  desirable,  Board  may  act  even  though  specified  number  Is  not  Involved. 
2S  Only  disputes  In  specified  Industries. 

27  Only  disputes  regarding  conditions  of  labor. 

28  Only  disputes  regarding  wages,  hours,  and  conditions  of  employment  on  Interstate  carriers  engaged  In  Inter- 
state commerce. 

28  Local  governmental  officials  or  labor  officials  given  duty  to  notify  Board  of  disputes  within  their  territory. 

30  Mediation  usually  only  on  application,  but  may  act  on  own  motion  re  public  service  corporations  in  disputes 
with  their  employees. 

31  During  mediation  neither  party  to  use  time  so  gained  for  advantage  over  the  other. 

32  Action  to  be  by  the  State  Commissioner  of  Labor. 

33  Public  notice  of  hearing  or  not,  at  discretion  of  Board,  where  parties  desire  private  hearing. 

34  If  parties  refuse  to  submit  dispute  to  arbitration.  State  Labor  Commissioner  requests  a  sworn  statement  of 
the  reasons  for  such  refusal,  making  this  public. 

35  In  specified  Industries,  or  by  agreement.  In  other  Industries. 

36  If  governor  thinks  public  welfare  Is  threatened.      (In  Oklahoma,    If   Board  thinks   public   Is   likely   to   suffer 
Injury.) 


LEGAL  MACHINERY  FOR  ADJUSTING  DISPUTES 

FOR  ADJUSTING  LABOR  DISPUTES — Continued 


329 


16 

16 

17 

18 

Ifl 

80 

21 

29 

23 

24 

28 

28 

27 

28 

20 

30 

31 

32 

38 

M 

86 

30 

37 

38 

89 

40 

41 

- 

| 

— 

a 

a 

• 

Maryland 

Massachuse 

Michigan 

Minnesota 

Missouri 

Montana 

Nebraska 

Nevada 

~ 
k 

Y-, 

New  Jersey 

New  York 

, 

Oklahoma 

d 

Pennsylvanl 

fl 

£ 

5 

Rhode  Islan 

3 
I 

South  Dako 

1 

| 

Vermont 

| 

d 

Wyoming 

United  Stat 

| 

z 

X 

X 

CMI 

X 

158 

3jM7 

X 

1  5'.» 

X 

100 

x 

X 

Mil 

X 

sw 

X 

X 

102 

X 

X 

103 

CM 

X 

KM 

X 

X 

(M 

X 

104 

X 

JJ 

X 

X110 

105 

X 

X 

X 

X 

100 

X 

107 

X 

X 

X 

X 

10S 

15 

16 

17 

18 

19 

30 

11 

22 

28 

24 

28 

20 

27 

28 

29 

80 

81 

32 

83 

M 

88 

86 

87 

88 

39 

40 

41 

STATUTORY  PROVISIONS 

37  Any  dispute  not  subject  to  any  action  before  a  state  court. 

38  Where  a  submission  to  a  local  board  of  arbitration  has  been  unsuccessful. 

39  Only  disputes  regarding  wages. 

40  Where  stoppage  Is  Imminent,  parties  given  duty  to  submit  to  Investigation. 

41  Only  disputes  on  Interstate  carriers  engaged  In  Interstate  commerce. 

42  Notice  of  hearing  specifically  called  for. 

43  If  governor  and  a  majority  of  board  deem  an  Investigation  advisable. 

44  Report,  but  to  governor  Instead  of  to  public. 

45  Findings  of  fact  reported  to  governor  unless  majority  of  board  deem  this  unwise. 

46  See  section  under  "Witnesses"  for  further  powers  of  investigating  bodies. 

47  Same  powers  as  a  board  of  arbitration. 

48  Board  may  have  assistance  of  attorney-general  or  other  officials. 

49  Decision,  binding  on  parties  who  join  therein.     (In  Missouri,   binding  unless  exceptions  are  filed  within   five 
days.) 

50  Same  powers  as  a  court  to  enforce  orders  at  hearings. 

51  State  Industrial  Commissioner.  If  he  so  desires,  or  If  requested  by  either   party,    may  call  In  two  disinterested 
citizens  to  assist  In  the  investigation. 

52  Where  dispute  Is  not  suable  In  state  courts. 

63  Commission  requests  parties  to  forward  applications  for  arbitration  to  It. 

64  If  work  has  ceased.  Commission  not  to  act  until  it  Is  resumed. 

55  The  vagueness  of   many  statutes   makes  accurate  classification  difficult.     The  arbitration  section   records 
nothing  not  specified  In  the  statute,  but  this  does  not  mean  that  points  not  specified  are  excluded.     Thus,  only  six  states 
in  so  many  words  require  submission  to  be  in  writing,  but  It  is  submitted  that  In  the  other   cases  this  Is  implicit  In 
the  statute,  especially  where  submission  Is  required  to  be  signed. 

56  On  information  of  dispute,  Board  Itself  tries  to  get  case  submitted  to  it. 

57  Names  of  employee  signatories  to  be  kept  secret. 

58  Pending  award,  parties  to  remain  In  statu  quo. 

59  If  either  party  falls  to  perform  promises,  Board  ceases  operations  until  other  party  In  writing  agrees  to  a  reaump 
tlon. 

60  Mandatory  public  notice  of  hearing.     Discretionary  when  parties  request  no  hearing. 

61  Additional  persons  to  be  added  to  Board  for  this  duty.     No  provision  for  non-public  hearing.     Meetings  to 
be  open  to  public.     Record  to  be  kept. 

62  Inquiry  may  be  carried  beyond  state  lines. 

>3  May  enforce  orders  at  hearings  with  same  powers  as  a  Court  of  Common  Pleas. 

64  If  dispute  Is  re  wages,  decision  reverts  back  to  date  on  which  employees  presented  written  demand  on  employer. 

65  Decision  to  be  "final  and  binding." 

66  May  also  be  abrogated  by  agreement  of  parties,  or  otherwise,  as  provided  In  submission. 
"  Whenever  the  State  Industrial  Commission  considers  It  expedient. 

68  Action  by  governor,  on  own  motion,  or  on  application,  whenever  an  interruption  of  Industry  "would  be  to  the 
detriment  of  the  public  interest."     Board  first  offers  mediation,  then  requests  submission  to  arbitration,  and.  If 
unsuccessful  In  this,  Investigates.     Secretary  of  State  acts  as  secretary  and  keeps  records. 

69  Disputes  not  in  Interstate  commerce  which  threaten  public  welfare,  where  the  parties,  or  officials,  petition 
governor  to  appoint  a  board. 

70  The  local  board  act  applies  chiefly  to  mechanical  and  mining  Industries. 

71  In  the  Industries  specified  In  the  statute. 

72  Under  the  Consolidation  Act  of  1913,  the  State  Industrial  Commission  may  appoint  local  boards  at  a  com- 
pensation of  S5  per  day.     These  may  establish  their  own  rules  of  procedure,  hold  hearings    and    publish  reportj 
Deputies  of  the  Commission  may  serve  thereon,  but  without  the  extra  compensation. 


330  WASTE  IN  INDUSTRY 


FOOTNOTES — Continued 

73  Submission  to  be  "required"  by  the  Commission  In  cases  where  disputes  threaten  an  Interruption  of  Industry 
"with  detriment  to  the  public  Interests." 

74 "Railway  Boards  of  Labor  Adjustment"  may  also  act  on  own  motion,  or  on  request  of  the  National  Railway 
Labor  Board,  as  well  as  on  application  by  the  parties. 

76  Inferred,  as  decisions  are  to  have  such  binding  effect  as  had  been  agreed  upon  In  the  submission. 

76  Agreement  that  award  may  be  specifically  enforced  In  equity,  and  to  remain  In  force  for  one  year,  no  new 
arbitration  to  be  asked  on  same  dispute  during  said  year,  unless  award  be  set  aside  by  mode  specified. 

77  To  stipulate  how  future  disputes  arising  out  of  this  award  may  be  settled.     Board  may  be  reconvened  for  this 
purpose. 

78  Evidence  not  restricted  to  technical,  legal  evidence.     Board  may  enforce  Its  writs  the  same  as  a  District  Court. 
May  hold  hearing  outside  of  state  with  governor's  permission. 

79  Attorneys  or  other  agents  of  the  parties  may  not  appear  before  the  Board. 

80  Hearing  to  be  within  ten  days  of  appointment  of  board.     Pending  award  there  are  to  be  no  discharges  save 
for  certain  stated  causes,  and  no  strikes,  or  advice  leading  toward  strikes. 

81  Decision  may  become  an  order  of  State  Industrial  Commission  when  approved  by  It. 

82  Status  quo  to  be  kept  for  at  least  ten  days  by  the  parties  pending  award. 

83  Extension  of  ten  more  days  may  be  granted  by  the  State  Board. 

84  If  similar  disputes  are  going  on,  the  parties  may  submit  them  to  this  board  for  arbitration. 

85  Award  of  either  Board  or  Umpire  may  be  Impeached  for  fraud,  accident,  or  mistake.     If  award  Is  for  money. 
It  may  be  made  of  record  by  filing  with  the  District  Court. 

86  Thirty  days'  notice  of  abrogation  necessary. 

87  To  the  Board  of  Mediation  and  Conciliation. 

88  No  more  than  ten  days  to  be  paid  for  In  any  one  arbitration.     In  Oregon,  twenty  days. 

89  Fees  and  expenses  "as  fixed  by  the  State  Board."     Probably  paid  by  the  state. 

90  As  fixed  by  the  Board  of  Mediation  and  Conciliation. 

91  If  the  dispute  was  voluntarily  submitted,  the  expenses  are  to  be  paid  by  the  parties,  otherwise  by  the  state. 

92  Members  authorized  to  receive  expenses,  but  no  further  compensation. 

93  Parties  to  give  a  bond  conditioned  upon  the  payment  of  all  expenses  connected  with  the  arbitration. 

94  May  summon  any  employee  who  keeps  a  record  of  wages. 

95  Board  may  summon  any  operative,  or  any  person  who  keeps  a  record  of  wages  In  the  department  of  the  business 
In  which  the  dispute  arose. 

96  Although  It  Is  not  stipulated  In  all  states  that  court  aid  may  be  secured  In  enforcing  the  power  of  summoning 
witnesses,  etc.,  It  Is  submitted  that  the  power  carries  with  It  the  possibility  of  this  being  enforced. 

97  Fee  the  same  as  for  similar  services  for  courts  of  first  instance  to  be  paid  by  the  local  municipality  or  county 
In  which  the  dispute  exists. 

98  To  receive  the  same  fees  as  are  provided  for  witnesses. 

99  Subpoenas  Issue  from  the  Chairman  or  Clerk  In  cases  of  Investigation,  and  from  "the  Board"  In   cases    of  arbi- 
tration. 

100  May  Issue  from  secretary. 

101  Any  Justice  of  the  Peace  or  clerk  of  a  court  of  record  will  Issue  subpoenas  for  this  board. 

102  All  testimony  to  be  on  oath  or  affirmation. 

103  May  be  administered  by  clerk  or  deputy. 

104  Same,  as  In  State  Supreme  Judicial  Court. 

105  25  cents  for  each  hour  In  attendance  in  excess  of  two  hours,  and  5  cents  per  ml'e  each  way  for  necessary  travel. 

106  50  cents  for  attendance,  and  25  cents  for  each  hour  above  two,  and  5  cents  per  mile  traveling  expenses  each  way 
(for  witnesses  before  State  Board  only). 

107  Fees  to  be  paid  by  the  parties  where  the  case  was  voluntarily  submitted  (otherwise  by  the  State). 
i°8  An  accountant  may  be  employed  to  examine  books  and  papers  for  Board.     To  be  sworn. 

109  Not  stated  to  whom,  but  Inference  Is  clear  that  It  Is  to  governor.     . 

110  Unless  the  Board  deems  It  undesirable  to  make  such  report.     Also  reports  on  each  case  to  governor. 
11  Reports  on  occasion  only 


CHAPTER  XIV 
INDUSTRIAL  ACCIDENTS 

BY  SIDNEY  J.  WILLIAMS 

The  Cost  of  Accidents. — Accidents  contribute  to  industrial  waste  in 
three  ways: 

1.  The  loss  of  productive  labor  on  the  part  of  workmen  who  are 
killed  or  injured,  together  with  the  cost  of  medical  and  surgical  attention 
and  the  overhead  cost  in  connection  with  the  payment  of  claims. 

2.  The  indirect  loss  of  production  due  to  the  stoppage  or  slowing  up 
of  work  when  an  accident  occurs.     This  applies  not  only  to  the  operation 
at  which  the  man  is  injured,  but  also  to  other  operations  dependent 
thereon.     It   applies  also   to   "  near-accidents "   in   which   no   personal 
injury  occurs. 

3.  The  injurious  effect  of  frequent  accidents  on  the  morale  of  workers. 
Conversely,  it  may  be  noted,  successful  accident  prevention  work  leads 
to  improvement  in  labor  relations. 

Direct  Cost  of  Accidents. — In  1919  there  occurred,  in  all  the  indus- 
tries of  the  United  States,  about  23,000  fatal  accidents;  about  575,000 
non-fatal  accidents  causing  four  weeks  or  more  disability;  about  3,000,000 
accidents  in  all  causing  at  least  one  day's  disability.1  The  figures  for 
1918  were  about  13%  higher. 

The  time  lost  as  a  result  of  these  accidents  may  be  computed  as  follows : 

Days 

Actual  time  lost  in  2,977,000  non-fatal  accidents 50,000,000 

Loss  of  future  earning  power  as  result  of  complete  or  partial  permanent 
disability  resulting  from  115,000  accidents  included  in  above,  equivalent 

to 108,000,000 

Loss  of  earning  power  resulting  from  23,000  fatal  accidents  equivalent  to  2.   138,000,000 


Total 296,000,000 

1  Estimate  of  F.  S.  Crum,  Assistant  Statistician,  Prudential  Life  Insurance  Company, 
based  on  all  available  statistics. 

2  The  equivalents  here  used  are  those  agreed  upon  by  the  statisticians  of  the  Federal 
and   State   Labor   Departments   and   Industrial   Commissions.     The   equivalent   for 
death  or  permanent  total  disability  is  6,000  days,  based  on  a  twenty-year  expectancy  of 
working  life  for  the  average  workman  accidentally  killed  or  injured.     Smaller  equiva- 
lents are  used  for  the  loss  of  an  arm,  hand,  finger,  etc. 

331 


332  WASTE  IN  INDUSTRY 

•  If  we  may  assume  an  average  wage  of  $4  per  calendar  day  ($28  per 
week)  the  above  time  lost  represents  a  wage  loss  of  $1,184,000,000.  From 
this  we  may  subtract  the  actual  cost  of  subsistence  of  the  men  killed,1 
which  may  be  placed  at  approximately  60%  of  their  wages,  or  about 
$331,000,000.  This  leaves  a  net  economic  loss  to  the  country  of  about 
$853,000,000  for  the  year  1919. 

A  part  of  this  loss  is  borne  by  the  employer  in  the  form  of  payments 
under  workmen's  compensation  laws,  made  either  direct  to  the  workman 
or  in  the  form  of  insurance  premiums.  The  remainder  is  borne  by  the 
workman  himself,  and  his  dependents. 

In  addition  to  compensation  actually  paid  to  the  workman,  the 
employer  pays  for  medical  and  surgical  aid  and  hospital  bills,  and  also, 
except  where  he  is  self -insured,  he  bears  the  various  administrative  and 
overhead  expenses  of  the  insurance  companies.  In  one  state — Wisconsin 
— these  costs  other  than  compensation  amounted  to  86%  of  the  actual 
compensation  paid  to  workmen;  while  the  actual  compensation  amounted 
to  about  22%  of  the  total  actual  and  prospective  wage  loss.  Such  data 
as  are  available  from  other  states,  and  from  insurance  companies  operating 
nationally,  indicate  that  the  Wisconsin  figures  are  approximately  typical. 
If  this  is  the  case,  then  the  total  direct  cost  of  industrial  accidents  in  the 
United  States  in  1919,  including  medical  aid  and  insurance  overhead, 
was  not  less  than  $1,014,000,000,  of  which  $349,000,000  was  borne  by 
employers  and  $665,000,000  by  employees  and  their  dependents.  These 
approximate  figures  are  still  short  of  the  mark  because  they  do  not  include 
such  items  as  medical  expenses  incurred  by  workmen  and  not  paid  by  the 
employer  or  insurance  company;  overhead  cost  of  personal  accident 
insurance  carried  by  workmen;  cost  of  training  new  men  to  take  the 
place  of  those  injured;  employment  department  and  welfare  department 
expense  in  keeping  track  of  injured  workmen  and  their  families. 

Experience  indicates,  and  authorities  agree,  that  75%  of  this  loss 
could  be  avoided.  This  would  mean  a  saving  of  a  quarter  of  a  billion 
dollars  yearly  to  employers,  and  a  saving  of  half  a  billion  dollars  yearly 
to  employees. 

Results  Accomplished  in  Accident  Prevention. — The  best  measure 
of  accident  cost  in  and  to  an  industrial  concern  is  the  "  severity  rate  " 
or  number  of  days  lost  per  thousand  hours  worked,  using  for  fatalities 
and  permanent  disabilities  the  equivalents  already  employed  above. 
This  is  a  more  exact  measure  than  the  compensation  cost,  because  the 
latter  varies  with  changing  rates  of  wages  and  changes  in  compensation 
laws.  The  records  necessary  to  compute  severity  rates,  however,  are 
often  not  available,  especially  for  earlier  years,  even  in  many  companies 
which  have  done  very  successful  and  profitable  safety  work.  The  following 
1  For  a  period  of  twenty  years,  as  above. 


INDUSTRIAL  ACCIDENTS 


333 


table  shows  the  records  of  a  few  companies  in  reducing  their  "  severity 
rate,"  typical  of  those  for  which  exact  figures  are  available. 

PER  CENT  REDUCTION  IN  ACCIDENT 


Severity  Rate 

Company 

(Days  lost  per 
10000  hours 

Two  Years 
Compared 

Average  Number 
Employees 

worked) 

Raritan  Copper  Works  

81% 

1912        1920 

900 

E.  I.  du  Pont  de  Nemours  Co. 

77% 

1910        1919 

17,000 

T.  H.  Symington  Company.  . 

87% 

1919        1920 

500 

The  Federal  Rubber  Co  

62% 

1918        1920 

1,700 

Bethlehem    Steel    Company 

(Bethlehem  Plant)  

65% 

1919        1920 

13,000 

Halcomb  Steel  Co  

77% 

1916        1918 

1,400 

Four  Wheel  Drive  Auto  Co.. 

83% 

1917        1918 

1,300 

Oliver  Iron  Mining  Co  

73% 

1919        1920 

2,400 

The  above  records  are  the  more  remarkable  when  it  is  considered 
that  in  several  cases — for  example,  the  Bethlehem  Steel  Company — 
considerable  progress  had  been  made  in  accident  prevention  before  the 
period  covered  by  the  table.  If  accurate  records  for  the  years  preceding 
the  inauguration  of  safety  work  were  available,  the  total  reduction  would 
frequently  be  found  to  exceed  90%. 

Doubtless  many  other  companies  which  have  spent  considerable 
money  on  safety  work  have  secured  less  favorable  results.  Such  companies 
are  naturally  less  likely  to  publish  their  figures.  In  most,  if  not  all  of 
such  instances,  for  one  reason  or  another  proper  methods  have  not  been 
used.  Authorities  agree  that  it  is  possible,  by  using  the  methods  already 
worked  out,  to  reduce  deaths  and  serious  accidents — and  therefore  to 
reduce  accident  cost — in  American  industry  by  at  least  75%. 

The  cost  of  carrying  on  successful  safety  campaigns  has  been  a  small 
fraction  of  the  saving  made.  Thus  the  United  States  Steel  Corporation 
has  stated  that  its  safety  work  has  yielded  a  net  profit  to  the  company  of 
more  than  one  billion  dollars  per  year.  Similarly,  a  coal  mine  employing 
about  one  hundred  men  reports  a  decrease  of  68%  in  accident  cost  per 
ton  of  coal,  even  when  the  cost  of  the  safety  department  is  included  with 
the  actual  compensation  and  medical  expense  during  the  later  period. 

The  methods  used  in  securing  these  results  are  similar  in  all  industries. 
They  represent  a  combination  of  two  factors:  on  the  one  hand,  mechanical 
and  engineering  improvements,  ranging  from  a  simple  gear  guard  up  to 
the  complete  redesign  of  processes  and  equipment;  and  on  the  other  hand 
a  definite  system  of  education  and  supervision  not  only  of  workmen  but 


334  WASTE  IN  INDUSTRY 

of  foremen  and  superintendents.  Experience  has  shown,  not  only  that 
the  combination  of  these  two  factors  is  necessary  for  complete  success, 
but  further  that  each  increases  the  value  of  the  other.  Improvements  in 
equipment  and  methods  have  made  it  possible  to  obtain  a  readier  response 
to  educational  efforts  among  workmen  and  foremen;  while  the  educa- 
tional and  supervisory  work  has  led  to  the  invention  of  safer  and  better 
equipment  and  methods,  and  the  more  willing  use  of  the  improved  equip- 
ment which  had  been  provided.  An  outline  of  the  principal  essentials  of 
organized  accident  prevention  work  is  given  elsewhere  in  this  chapter. 

Indirect  Cost  of  Accidents— Benefits  from  Prevention. — The  total 
economic  cost  of  accidents  is  not  limited  to  the  direct  cost  already  dis- 
cussed. A  description  of  two  typical  instances  will  illustrate  what  is  meant 
and  will  pave  the  way  for  a  general  analysis. 

In  a  plant  manufacturing  aluminum  canteens  for  the  War  Depart- 
ment, each  half  of  the  canteen  was  formed  on  a  stamping  press.  Several 
operators  lost  one  or  more  fingers  at  this  work.  A  state  inspector,  calling 
to  investigate,  found  that  these  accidents  occurred  when  the  operator 
reached  in  to  free  a  piece  which  had  stuck  in  the  die.  As  a  remedy  he 
suggested  a  foot-operated  kick-out.  The  War  Department  representative 
protested  against  this  change  on  the  ground  that  the  canteens  were  urgently 
needed  and  their  production  must  not  be  interrupted.  Finally  the  press 
was  shut  down  and  the  kick-out  installed.  To  the  surprise  of  every  one, 
within  a  couple  of  days  the  output  of  canteens  had  caught  up  with  pro- 
duction schedule  and  thereafter  the  daily  production  was  approximately 
doubled  as  a  result  of  installing  the  kick-out. 

Another  company,  manufacturing  metal  beds,  had  a  bad  accident 
record  in  its  punch  press  department.  A  safety  engineer  was  employed. 
He  found  that  the  accidents  occurred  because  the  operators  had  to  put 
their  hands  under  the  die,  in  placing  and  removing  material.  To  remedy 
this  he  introduced  a  variety  of  semi-automatic  feeds,  most  of  them 
simple  home-made  affairs,  with  which  the  operator  fed  the  material  into 
a  trough  instead  of  placing  it  directly  in  the  press.  These  changes  imme- 
diately brought  about,  not  only  a  practical  elimination  of  serious  accidents, 
but  also  an  increase  in  production,  ranging  from  10  to  more  than  100%. 

What  caused  these  large  increases  in  output?  The  accidents  occurred 
because  the  operator  placed  his  hand  in  the  press,  either  in  the  normal 
operation  of  placing  or  removing  material  or  in  the  supposedly  exceptional 
instances  where  the  material  stuck  and  had  to  be  pried  loose.  In  a  very 
small  fraction  of  these  cases,  either  the  operator  inadvertently  tripped 
the  press  or  something  went  wrong  in  the  clutch;  the  plunger  descended 
and  injured  his  hand.  While  personal  injury  occurred  in  only  a  few 
instances,  every  time  the  operator  put  his  hand  into  the  press,  time  was 
lost — sometimes  a  fraction  of  a  second,  sometimes  more.  When  the 


INDUSTRIAL  ACCIDENTS  335 

operation  was  changed  so  that  the  man  had  no  need  to  put  his  hand  in 
the  press,  these  time  losses  were; saved — a  larger  economic  gain  than  the 
elimination  of  the  few  personal  injuries. 

Another  factor  in  the  increase  of  output  was  doubtless  the  elimination 
of  fear  or  nervousness.  An  operator  who  knows  that  a  false  move  may 
cost  him  a  finger — especially  if  he  has  seen  another  man  injured  at  the 
same  operation — is  likely  to  be  cautious  and  slow  in  his  movements.  If 
he  has  to  reach  into  the  press,  he  may  take  his  foot  off  the  treadle  in  order 
to  avoid  the  possibility  of  tripping.  In  various  ways  he  may  lose  more  time 
than  is  required  by  the  additional  motion  of  reaching  into  the  press. 
Again,  consider  a  truck  load  of  material  being  pushed  through  a  shop  by  a 
workman.  A  piece  of  material  falls  off  the  truck  and  injures  the  work- 
man's foot.  We  call  this  an  accident  and  we  know  that  it  results  in  an 
economic  loss.  But  there  are  many  other  times — perhaps  a  hundred  or 
more — when  a  piece  falls  off  the  truck  but  does  not  happen  to  fall  on  the 
workman's  foot.  Every  time  this  happens,  there  is  more  or  less  damage 
to  the  material,  its  container,  or  the  floor;  the  workman  must  stop  and 
pick  up  the  piece — perhaps  he  must  call  some  one  else  to  come  and  help 
him;  other  truckers  behind  him  are  forced  to  wait;  the  machine  operator 
who  is  to  use  the  material  may  also  be  delayed.  The  foreman  or  safety 
inspector  who  investigates  the  occasional  personal  injury  may  find  that 
it  was  caused  by  a  hole  in  the  floor,  by  too  restricted  a  passageway,  by 
poor  lighting,  by  an  improperly  designed  truck,  or  any  of  several  other 
causes.  When  this  defect  is  remedied  it  saves  not  only  the  occasional 
injury  but  the  much  more  frequent  loss  of  time.  From  the  economic 
standpoint,  the  injury  is  chiefly  important  not  because  of  its  own  direct 
cost  but  because  it  attracts  attention  to  a  condition  of  inefficiency  which 
in  the  aggregate  is  even  more  costly. 

Accident  Prevention  as  Stimulus  to  Efficiency. — These  instances  lead 
to  a  general  analysis.  What  is  an  accident?  One  dictionary  definition 
is  "  anything  occurring  unexpectedly."  In  this  broad  sense,  the  material 
sticking  in  the  punch  press,  the  belt  breaking,  the  casting  falling  off  the 
truck,  the  railroad  train  jumping  the  track,  is  an  accident,  whether  any 
person  happens  to  be  injured  or  not.  Against  this  idea,  place  the  idea 
which  is  the  spirit  and  aim  of  all  large  scale  production — to  determine  the 
"  one  best  way  "  of  doing  things,  and  always  to  do  each  thing  in  that  one 
way.  Obviously,  these  two  ideas  are  in  direct  opposition.  All  accidents 
in  the  broad  sense — all  things  occurring  unexpectedly — are  hindrances  to 
efficiency,  whether  any  one  happens  to  be  injured  or  not.  The  occasional 
accident  in  which  some  one  is  injured  therefore  has  a  significance  beyond 
its  own  cost — it  serves  as  a  symptom  of  many  other  "  accidents  "  in 
which  no  one  was  injured  but  through  which  time  was  lost  and  pro- 
duction curtailed. 


336  WASTE  IN  INDUSTRY 

If  accidents  hinder  efficiency,  it  is  equally  true  that  efficiency  hinders 
accidents.  In  a  perfectly  efficient  plant,  nothing  would  ever  happen 
unexpectedly  and  there  could  be  no  accidental  injuries.  The  fact  is, 
however,  that  few  if  any  plants  are  perfectly  efficient.  The  two  punch 
press  departments  mentioned  above  were  in  factories  whose  general 
management  and  whose  profits  were  well  above  the  average.  Particular 
attention  had  been  given  to  increasing  production  efficiency.  Never- 
theless, the  constant  loss  of  time  due  to  the  lack  of  a  kick-out  in  the  one 
case  and  of  chute  feeds  in  the  other  case  passed  unnoticed  until  attention 
was  attracted  by  the  injury  of  operators,  and  a  remedy  was  suggested  by 
a  safety  inspector  or  engineer.  As  long  as  executives  and  engineers, 
like  other  men,  are  imperfect,  any  new  impetus  to  higher  production 
efficiency — any  new  assistance  in  securing  the  higher  efficiency — is  a  good 
thing.  Therefore  accident  prevention  work  is  economically  desirable 
as  an  aid  to  efficiency  as  well  as  for  its  direct  saving  of  money. 

This  is  particularly  true  because  safety  work  has  a  human  as  well  as  a 
production  appeal.  Most  executives  as  well  as  most  workmen  are  instinct- 
ively more  sympathetic  to  a  suggestion  designed  to  prevent  human 
injury  than  to  those  designed  merely  to  improve  mechanical  efficiency. 
Perhaps  this  explains  why  in  the  instances  above  quoted,  as  in  many 
others,  changes  have  been  made  to  prevent  accidents  and  have  incidentally 
increased  production,  where  no  one  had  thought  of  making  the  same 
changes  for  production  purposes  only. 

It  is  impossible  to  make  even  an  approximate  estimate  of  the  amount 
of  money  which  has  been  saved  or  may  be  saved  by  increasing  production 
through  accident  prevention  work.  In  the  specific  instances  noted, 
punch  press  production  was  increased  10  to  100%.  In  general,  the 
limit  of  this  saving  is  nothing  less  than  the  total  saving  which  might 
be  made  through  the  elimination  of  all  stoppages  or  interruptions  in  pro- 
duction. Whatever  this  possible  saving  may  be — and  we  know  that 
it  is  tremendous — organized  accident  prevention  work  will  be  of  material 
assistance  in  bringing  it  about. 

Accident  Prevention  and  Better  Industrial  Relations. — Industrial 
waste  arises,  not  only  from  imperfect  physical  equipment  and  methods, 
but  also  from  imperfect  relations  between  management  and  men.  In 
improving  the  latter,  as  well  as  the  former,  safety  work  plays  an  important 
part. 

Accidents  have  a  certain  effect  on  labor  turnover.  When  a  man  is 
injured,  another  must  be  put  in  his  place.  This,  however,  is  not  the  only 
way  in  which  accidents  affect  labor  turnover.  Frequent  accidents  affect 
the  worker's  feeling  toward  the  management;  they  make  him  less  pro- 
ductive in  his  work  and  more  ready  to  quit  on  slight  provocation.  On 
the  other  hand,  in  a  shop  or  other  place  of  employment  where  attention 


INDUSTRIAL  ACCIDENTS  337 

is  given  to  accident  prevention,  the  feeling  of  the  workman  is  very  dif- 
ferent—partly because  he  appreciates  having  a  safe  place  in  which  to  work, 
but  still  more  because  of  the  co-operative  methods  used  in  making  the 
place  safe. 

The  recognized  basis  of  safety  work  as  successfully  practiced  in  this 
country  to-day  is  co-operation  between  management  and  men.  We  have 
already  pointed  out  that  successful  safety  work  is  a  combination  of 
engineering  and  education.  To  get  results  from  any  educational  work 
requires  the  good-will  and  preferably  the  co-operation  of  those  to  be 
educated. 

Very  few  accidents  are  due  to  mechanical  causes  alone.  In  most 
instances  the  human  element  enters,  often  to  a  controlling  degree.  In 
the  average  plant,  the  fullest  possible  provision  of  mechanical  guards — 
for  gearSj  belts,  circular  saws,  and  the  like — will  not  prevent  more  than  5  to 
10%  of  the  accidents.  Attention  to  some  of  the  less  obvious  engineering 
factors— lighting,  internal  transportation  system,  and  the  redesign  of 
equipment  and  processes  which  are  inherently  hazardous — will  prevent 
many  more  accidents.  There  will  still  remain,  however,  a  large  per- 
centage which  can  be  prevented  only  by  greater  caution  on  the  part  of 
the  workmen  and  of  the  supervisory  force.  This  can  be  secured  only  by 
organization  and  education  which  lead  the  workman  to  realize  that  in 
this  matter  his  interests  and  the  interests  of  the  employer  are  identical, 
that  the  only  way  they  can  prevent  accidents  is  by  working  together, 
and  that  the  result  of  their  joint  efforts  will  be  of  benefit  to  both. 

Here  arises  the  great  contribution  of  safety  to  the  betterment  of  indus- 
trial relations.  When  workmen  find  that  it  is  both  possible  and  profitable 
to  co-operate  with  the  management  in  preventing  accidents,  they  begin 
to  see  that  it  may  be  possible  and  profitable  to  co-operate  in  other  respects 
as  well.  Many  industrial  executives  testify  that  this  is  the  case.  One 
of  them  said  two  years  ago,  "  I  believe  that  accident  prevention  during 
the  past  ten  years  has  offered  the  first  common  ground  on  which  employer 
and  employee  can  meet  with  mutual  understanding  of  each  other's 
motives,  and  with  profit  to  both."  The  workmen's  safety  committees 
later  described  in  this  report,  and  first  organized  a  dozen  years  ago,  were 
forerunners  of  the  general  shop  committees  and  the  employee  represen- 
tation plans  now  in  use.  Good-will  and  co-operation  with  respect  to  safety 
— which  is  a  non-controversial  subject  as  between  employer  and  employee 
—lead  to  good-will  and  co-operation  in  other  more  delicate  problems  of 
shop  management,  such  as  hours  of  work  and  wages. 

Conversely,  improved  industrial  relations  tend  to  reduce  accidents. 
Records  show  that  green  men  are  about  five  times  as  likely  to  be  hurt  as 
experienced  men;  therefore  any  reduction  in  labor  turnover  is  an  aid  to 
safety.  The  same  is  true  of  any  industrial  relations  or  betterment  work 


338  WASTE  IN  INDUSTRY 

which  improves  the  worker's  state  of  mind  or  his  health,  because  mental 
and  physical  disturbances  have  been  found  to  be  large  contributory 
factors  in  producing  accidents.  As  with  mechanical  efficiency,  so  with 
employee  relations — improvement  in  both  of  these  goes  hand  in  hand 
with  improvement  in  safety,  each  influence  reacting  beneficially  upon 
the  other. 

Essentials  of  Successful  Safety  Work. — 1.  The  Management. — An 
efficient  safety  organization  starts  at  the  top.  First,  the  manager  must 
do  his  part,  and  his  part  is  to  "  put  safety  on  the  map."  He  must  make  it 
a  necessary  part  of  the  process  of  production,  get  back  of  it  so  actively 
that  every  foreman  and  workman  will  know  just  what  the  company 
proposes  to  do  to  help  make  the  plant  safe.  He  must  convince  his  men  by 
visible  signs,  in  the  form  of  mechanical  guards,  good  lighting,  etc.,  that  he 
is  doing  his  full  part,  before  he  can  expect  his  men  to  take  safety  seriously 
or  give  any  genuine  co-operation.  He  must  bring  his  superintendents 
and  foremen  to  believe  in  safety  and  to  give  it  their  whole-hearted  and 
intelligent  co-operation. 

2.  The  Safety  Engineer.— One  man  should  be  made  responsible  for 
the  safety  work  in  every  plant,  regardless  of  its  size.    His  duties  and 
qualifications  will  determine  whether  he  should  be  called  the  safety 
engineer,   safety  director,  safety  inspector,  or  by  some  other  equally 
significant  title.     For  brevity  he  is  here  referred  to  as  the  safety  engineer. 
In  small  plants  he  need  not  devote  his  entire  time  to  accident  prevention, 
but  under  no  circumstances  should  this  responsibility  be  given  as  a  side- 
line to  an  already  overworked  individual. 

The  safety  engineer  should  be  given  opportuntites  to  acquaint  himself, 
by  reading  and  by  personal  contact,  with  the  methods  employed  by  other 
safety  engineers  who  have  done  effective  accident  prevention  work.  The 
following  will  suggest  a  few  of  the  duties  of  a  safety  engineer: 

1.  Check  up  unsafe  practices,  insanitary  conditions,  the  use  and  need  of  safe- 
guards, etc. 

2.  Keep  in  touch  with  foremen  and  secure  their  co-operation  by  serving  them. 

3.  Recommend  methods  of  safeguarding  and  follow  up  installations. 

4.  Check  all  specifications  and  drawings  for  new  equipment  or  repairs  to  see  that 
provision  is  made  for  safety. 

5.  Supervise  bulletin  board  service. 

6.  Supervise  safety  educational  activities. 

7.  Arrange  programs  for  safety  meetings. 

8.  Investigate  all  serious  accidents  and  near-accidents. 

3.  Central  Safety  Committee. — In  large  plants  the  safety  organization 
should  be  headed  by  a  central  safety  committee  to  which  all  important 
matters  should  be  referred  for  decision.     In  some  cases  the  plant  "  staff," 
if  it  meets  regularly,  may  make  unnecessary  the  formation  of  a  central 


INDUSTRIAL  ACCIDENTS  339 

safety  committee.  The  central  safety  committee  should  include  the 
superintendent  as  chairman,  the  safety  engineer  as  secretary,  and  four 
or  five  other  men  occupying  responsible  positions,  such  as  chief  engineer, 
master  mechanic,  employment  manager,  purchasing  agent,  and  depart- 
ment superintendents. 

An  effective  central  safety  committee  will  relieve  the  manager  of 
many  details,  and,  by  making  thorough  investigations  of  all  important 
problems,  will  enable  the  manager  to  make  quick  decisions  in  promoting 
safety  work.  This  committee  should  have  authority  to: 

1.  Pass  on  controversial  matters. 

2.  Establish  standards  for  safeguards. 

3.  Review  reports  and  recommendations  of  safety  engineer,  foremen,  and  work- 
men. 

4.  Formulate  safety  rules. 

5.  Outline  educational  methods  and  direct  safety  campaigns. 

6.  Study  accident  experience  tabulated  by  safety  engineer. 

4.  Foremen  and  Sub-Foremen. — The  attitude  of  the  workman  toward 
safety  depends  to  a  great  extent  upon  the  attitude  of  the  foreman. 
Discipline  has  a  place  in  safety  work,  but  in  the  long  run  a  foreman  must 
lead  his  men  into  safe  habits,  not  drive  them.     Foremen  should: 

1.  Instruct  their  men,  especially  new  men. 

2.  Enforce  safety  rules  with  wise  discipline. 

3.  See  that  tools  and  machines  are  kept  in  proper  repair  and  adjustment. 

4.  Inspect  their  departments  and  render  weekly  reports. 

5.  Investigate  accidents  and  near-accidents  and  recommend  methods  of  pre- 

vention. 

6.  Keep  closely  in  touch  with  and  encourage  the  workmen's  safety  committees. 

5.  Foremen's  Safety  Meetings. — In  small  plants  where  there  are  only 
one  or  two  foremen,  these  men  are  often  considered  part  of  the  plant 
staff,  and  thus  participate  in  the  meetings  of  the  central  safety  committee. 
In  larger  plants,  where  the  central  safety  committee  does    not  include 
all  of  the  foremen,  special  safety  meetings  for  foremen  and  sub-foremen 
should  be  held  at  least  once  each  month,  to  consider  reports  of  inspection 
committees,  new  recommendations,  progress  on   approved  recommenda- 
tions, accident  experience,  etc. 

6.  Foremen's   Inspection   Committee. — In   plants   having    more   than 
500  employees  it  is  advisable  for  the  purpose  of    standardizing  safety 
work  to  appoint  a  foremen's  inspection  committee,  consisting  of   at  least 
five   foremen   selected   from    different    departments.     The   membership 
should  be  changed  at   regular  intervals.     This  committee  should  make 
one  general  inspection  of  the  plant  at  least  every  three  months — once  a 
month  is  preferable.     Each  report  of  this  committee  should  be  submitted 
at  the  foremen's  meeting. 


340  WASTE  IN  INDUSTRY 

7.  Safety  Mass  Meeting  for  all  Employees. — As  soon  as  possible  after 
the  first  foremen's  safety  meeting,  the  manager  should  call  a  general 
meeting  of  all  employees  for  the  purpose  of  explaining  to  them  the  entire 
plan  and  securing  their  co-operation. 

8.  Workmen's  Safety  Committee. — Give  a  workman  some  active  part 
in  safety  work,  some  recognition,  some  responsibility — and  you  will  secure 
his  interest.     This  has  been  the  experience  of  all  companies  which  have 
properly  organized  workmen's  safety  committees.    The    one    indispen- 
sable thing  is  that  the  foremen  shall  believe  in  the  committee  idea  and 
constantly  encourage  the  men  in  their  work.     When  the  workmen  are 
given  full  opportunity  to  ascertain  just  how  men  are  being  injured  in  their 
departments,  they  find  out  for  themselves  what  a  small  percentage  of 
the  accidents  can  be  prevented  by  mechanical  guards  and  what  a  large 
percentage  are  due  to  unsafe  practices.    The  duties  of  the  workmen's 
safety  committees  are: 

1.  To  make  regular  inspections  for  unsafe  conditions  and  practices,  and  submit 
to  the  foreman  a  written  report  of  findings. 

2.  To  instruct  and  warn  fellow  workmen  regarding  dangerous  practices. 

3.  To  investigate  all  serious  accidents  and  near-accidents  and  submit  reports  and 
recommendations. 

9.  Safety    Bulletin    Boards. — Bulletins    giving    pictures    and    stories 
which  drive  home  what  the  workman  can  do  to  protect  himself,  have 
come  to  be  recognized  as  one  of  the  most  effective  means  of  reaching  the 
men.     Bulletin  boards  should  be  placed  at  convenient  points  in  each 
department. 

The  secret  of  a  live  bulletin  board  is  constant  change — always  something 
new,  something  striking.  In  addition  to  the  National  Safety  Council 
safety  bulletins,  home-made  bulletins  should  be  used  covering  accidents 
or  near-accidents  which  have  actually  occurred  in  the  plant,  together 
with  interesting  exhibits,  such  as  goggles  which  prevent  eye  injuries. 

The  foregoing  outline  of  the  essentials  of  successful  accident  prevention 
work  is  recommended  by  the  National  Safety  Council  of  Chicago,  based 
on  the  experience  of  its  4,000  member  companies,  including  the  com- 
panies whose  accomplishments  in  accident  reduction  have  been  previ- 
ously noted. 

Relations  of  Safety  Department  to  Other  Departments. — Preceding 
sections  have  indicated  that  to  be  successful,  accident  prevention  work 
must  be  closely  tied  in  with  the  production  and  engineering  departments 
on  the  one  hand  and  with  the  personnel  or  industrial  relations  department 
on  the  other.  In  the  latter  are  included  the  employment  department  and 
the  medical  or  health  department.  Co-operation  with  the  medical 
department  is  necessary  in  the  treatment  of  injuries  and  in  the  return 
of  injured  men  to  work  at  the  proper  time  and  under  proper  conditions; 


INDUSTRIAL  ACCIDENTS  341 

also  with  respect  to  the  physical  examination  of  new  employees. 
Inspections  for  safety  and  for  sanitation  are  also  closely  allied  and  in 
many  plants  are  carried  out  by  the  same  men. 

Between  the  employment  department  and  the  safety  department 
the  most  important  point  of  contact  is  the  instruction  of  new  men.  As 
new  men  are  especially  susceptible  to  injury,  an  important  feature  of  every 
safety  program  is  the  instruction  of  the  new  man  in  the  safe  way  of  doing 
his  work.  This  should  be  carried  out  in  connection  with  any  general 
instruction  that  is  given  to  new  employees. 

The  teaching  of  English  to  workmen  is  also  closely  associated  with 
safety.  Non-English-speaking  workmen  are  particularly  liable  to  injury 
because  often  they  do  not  really  understand  how  to  do  their  work  and  do 
not  understand  the  instructions  of  their  foremen.  Teaching  these  men 
to  speak  English  reduces  the  accident  rate.  On  the  other  hand,  written 
or  oral  lessons  on  how  to  avoid  injury  are  often  used  as  material  in  teaching 
English. 

While  some  companies  place  safety  work  directly  under  the  production 
department,  the  majority  make  it  one  of  the  division  of  the  personnel 
department.  The  safety  department  then  acts  in  an  advisory  or  con- 
sulting capacity  toward  the  production  and  engineering  departments. 
This  arrangement  is  desirable  because  it  has  been  found  that  in  order  to 
prevent  accidents,  responsibility  must  be  placed  squarely  upon  the  pro- 
duction executives,  from  the  manager  down  to  the  foreman,  for  these  are 
the  only  men  who  can  really  bring  about  the  proper  maintenance  of  physical 
conditions  in  the  plant  and  proper  supervision  of  employees. 

SIDNEY  J.  WILLIAMS. 


CHAPTER  XV 

HEALTH  OF  INDUSTRIAL  WORKERS 

BY  EUGENE  LYMAN  FISK,  M.D.,  ASSISTED  BY  C.  T.  SHARPE,  M.D.1 
FOREWORD 

"  Ii  is  becoming  realized  more  and  more  that  health  rather  than  material  wealth  is  a  people's  greatest 
asset,  as  upon  its  health,  its  sanity,  and  its  vigour  depend  its  progress,  its  prosperity,  and  its  destiny. 
Inleed,  health  and  not  wealth  is  the  basis  of  a  people's  ambitions,  aspirations,  and  achievements."  * 

This  investigation  was  undertaken  for  the  purpose  of  ascertaining  the 
degree  of  waste  arising  in  industry  from  ill  health  arid  physical  insuffici- 
encies. It  soon  became  apparent  that  to  restrict  the  investigation  or  the 
discussion  of  this  problem  to  a  particular  class  of  workers  would  be  an 
unwise  limitation  of  the  investigation  and  would  not  lead  to  a  sufficiently 
broad  treatment  of  the  fundamental  problems  involved. 

The  word  "  industry  "  is  used  throughout  industrial  literature  in  a 
rather  vague  and  indeterminate  sense.  For  some  it  connotes  mechanical 
factory  labor;  for  others,  all  gainful  occupations. 

A  continual  restriction  of  the  term  "  industrial  worker  "  to  mechanical 
factory  labor  operates  in  our  judgment  to  erect  an  unnecessary  and  formal 
barrier  between  capital  and  labor.  It  lends  support  to  the  notion  that 
fundamentally  different  types  of  human  beings  are  engaged  in  these  sub- 
divisions of  human  activity.  It  is  desirable  to  recognize  that  from  the 
President  of  the  United  States  to  the  laborer  in  the  factory  or  on  the 
farm,  all  citizens  not  physically  incapacitated  are,  or  should  be,  workers. 
The  fundamental  needs  and  responsibilities  of  all  citizens  as  to  the 
maintenance  or  upbuilding  of  health  are  similar,  and  we  cannot  properly 
solve  the  health  problems  of  the  factory  worker  unless  we  consider  him 
as  one  of  the  great  army  of  the  gainfully  employed  rather  than  a  special- 
ized unit  in  a  division  of  that  army.  An  investigation  of  this  type  should 
include  in  its  scope  an  inquiry  into  the  root  causes  of  human  insufficiency, 
of  human  failure  and  unhappiness.  Any  progress  made  in  the  solution 
of  these  supreme  human  problems  will  likewise  solve  the  problems  of  the 
factory  worker. 

Research  Assistants,  Mabel  Webster  Brown,  Jane  Olcott  Walters,  Nellie  Dunn 
MacKenzie. 

2  Armstrong- Jones,  Robert.  A  Review  of  Dementia  Praecox  Studies.  Science 
Progress,  London,  July,  1920,  v.  15,  pp.  155-59. 

342 


HEALTH  OF  INDUSTRIAL  WORKERS  343 

Perhaps  the  thought  we  have  in  mind  may  be  more  clearly  conveyed 
by  considering  actual  conditions  in  a  large  automobile  factory.  Under 
the  roof  of  such  an  establishment,  which  is  certainly  regarded  as  being 
included  in  industry,  we  find  under  modern  conditions  engineers,  chemists, 
physicians,  lawyers,  even  literary  men — publicity  men — technical  experts 
of  various  kinds,  mechanics  and  ordinary  laborers.  There  is  no  sharp 
line  of  demarcation  here  between  the  industrial  worker  in  the  restricted 
sense,  the  commercial  worker  and  the  executive.  We  believe  it  will  lead 
to  a  solution  of  all  these  problems,  whether  of  health,  organization,  pro- 
ductivity or  social  progress,  if  these  discussions  of  human  needs  include 
the  entire  group,  rather  than  sharply  differentiating  one  group  from 
another.  The  health  of  the  chief  executive  and  his  aids  may  have  a 
profound  influence  on  the  situation  of  the  entire  group. 

In  considering  this  problem,  however,  it  is  well  to  have  before  us  a 
picture  of  the  working  population.  This  we  may  readily  derive  from  a 
consideration  of  the  following  analysis  of  gainfully  employed  indi- 
viduals in  the  United  States,  based  upon  census  records  and  an  assumed 
increase  in  population  for  1921,  which  brings  the  total  for  these  classes 
up  to  42,000,000  grouped  as  follows: 

Farm  laborers 7,762,000 

Farmers 6.846,000 

Proprietors  and  officials 3,150,000 

Professional 2,268,000 

Lower  salaried 2,646,000 

Servants 1,722,000 

Industrial  wage  earners 16,044,000 

Unclassified 2,520,000 

It  should  be  borne  in  mind,  therefore,  that  throughout  this  report  on 
health  where  the  terms  "  working  classes,"  "  those  gainfully  employed," 
"  industrial  workers,"  "  wage-earning  population,"  or  similar  expressions 
are  used  in  the  discussion  of  health  in  industry,  reference  is  made  to  all 
gainfully  employed  persons,  unless  otherwise  specified. 

APPROACH  TO  THE  PROBLEM 

Direction  of  Evolution  in  Man. — No  satisfactory  solution  of  the 
problems  relating  to  the  influence  of  impaired  health  conditions  on  the 
productivity  and  adjustment  to  labor  of  the  industrial  workers  may  be 
expected  until  there  is  first  attained  a  good  working  knowledge  of  the 
type  of  organism  that  is  under  consideration,  i.  e.,  civilized  man.  What 
is  man's  physical  equipment  as  a  machine  and  how  near  to  perfection, 
or  rather  how  far  from  perfection,  is  he  on  the  average?  Is  he 
naturally  tending  toward  physical  perfection  by  a  process  of  evolution 


344  WASTE  IN  INDUSTRY 

and  can  he  be  left  gradually  to  move  toward  that  goal,  or  must  he  employ 
his  intelligence  not  only  for  individual  protection  and  advancement 
but  for  the  improvement  of  his  race? 

Leading  biologists  assure  us  that  there  is  no  evidence  that  the  physical 
type  of  existing  races  has  improved  during  the  historical  period  of  about 
one  hundred  centuries  and  there  is  considerable  evidence  to  show  that 
man  has  so  eased  his  struggle  for  existence  as  to  halt  the  progress  of 
natural  evolution.1 

The  actual  physical  records  would  in  fact  suggest  that  the  present 
favorable  general  death  rate  (12.9  per  1,000  in  1919,  United  States  Reg- 
istration Area)  is  due  rather  to  a  mitigation  of  the  struggle  for  existence 
and  a  protection  of  the  community  from  communicable  disease  than  an 
actual  upbuilding  of  the  physique  and  underlying  resistance  of  the  people. 
There  is  real  danger  in  drawing  a  too  sweeping  conclusion  from  the  evi- 
dence supplied  by  general  death  rates  as  to  the  physical  advancement 
of  the  race. 

Partial  pre-war  studies,2  such  as  have  been  made  by  the  Life  Exten- 


,  Edwin  Grant.     The  Direction  of  Human  Evolution.     New  York;  Scrib- 

ner,  1921. 

Osborn,  Henry  Fairfield.     Men  of  the  Old  Stone  Age.     New  York;  Scribner,  1915. 
Grant,  Madison.    The  Passing  of  the  Great  Race.     New  York;  Scribner,  1916. 
Tyler,  John  M.    The  New  Stone  Age  of  Northern  Europe.     New  York;  Scribner, 

1920. 
Metchnikoff,  Elie.    The  Nature  of  Man.     New  York;  Putnam  1910. 

—  The  Prolongation  of  Life.     New  York;  Putnam,  1910. 

2  Fisk,  Eugene  Lyman.  The  Possible  Functions  of  the  Life  Insurance  Company  in 
the  Conservation  of  Health.  Address  delivered  before  the  Section  on  Social 
and  Economic  Science,  American  Association  for  the  Advancement  of  Science, 
Cleveland,  O.,  January  3,  1913. 

-  Some  Results  of  Periodic  Health  Examinations.  Address  delivered  before 
the  American  Association  for  the  Advancement  of  Science,  December,  1914. 
Popular  Science  Monthly,  v.  86,  pp.  324-330. 

—  Periodic   Physical  Examination  of  Employees  :    Its   Economic  and   Social 
Value.    Address  delivered  before  the  National  Association  of  Manufacturers, 
New  York  City,  May  26,  1915. 

—  Findings  of  the  Life  Extension  Institute  in  Physical  Examinations  of  Industrial 
Workers.    Address  delivered  before  the  Annual  Meeting  of  the  American 
Public  Health  Association,  Rochester,  N.  Y.,  September  8,  1915. 

—  Increasing  Mortality  in  the  United  States  from  Diseases  of  the  Heart,  Blood 
Vessels  and  Kidneys.    Address  before  the  Philadelphia  Pathological  Society, 
October  14,  1915.     New  York  Medical  Journal,  January  15,  1916,  v.  103, 
No.  3,  pp.  97-106. 

—  Influence  of  the  War  on  our  Health  Ideals.     Address  before  the  Eastern 
Association  School,  Silver  Bay  on  Lake  George,   1917.     Physical  Training, 
October,  1917,  v.  XIV,  No.  10,  October,  1917,  pp.  443-^54. 

Schereschewsky,  J.  W.  Studies  in  Vocational  Diseases  —  The  Health  of  Garment 
Workers,  United  States  Public  Health  Bulletin  No.  71.  Washington;  Govern- 
ment Printing  Office,  1915. 


HEALTH  OF  INDUSTRIAL  WORKERS  345 

sion  Institute,  by  Schereschewsky,  Mock,  Clark,  Britton,  Farnum  and 
others  in  the  physical  examination  of  workers  in  all  walks  of  life,  and  also 
life  insurance  records,  revealed  the  probability  of  what  was  actually 
found  by  the  warring  nations  in  the  physical  sifting  of  their  populations. 
Man  is  far  below  a  reasonable  standard  of  animal  excellence.1  His 
period  of  full  vigor  and  physical  freedom  is  brief  compared  to  his  life 
cycle  and  to  what  might  easily  be  attained  by  better  breeding,  better 
physical  training,  more  intelligent  care  of  his  body  and  more  rational 
adjustment  to  his  work.  The  following  chart2  illustrates  this  thesis: 
Clark,  W.  I.  Medical  Supervision  of  Factory  Employees.  Journal  of  the  American 

Medical  Association,  February  15,  1913,  v.  LX,  No.  7,  pp.  508-510. 
Mock,  H.  E.     An  Efficient  System  of  Medical  Examination  of  Employees.    Address 
at  the  Tenth  Annual  Meeting  of  the  National  Association  for  the  Study  and 
Prevention  of  Tuberculosis,  Washington,  D.  C.,  May  7-8,  1914.    Transactions, 
pp.  39-46. 

Britton,  J.  A.  The  Relation  of  Medical  Examinations  of  Employees  to  the  Hygiene 
of  the  Working  Place  and  the  Efficiency  of  the  Working  Force.  Address  at 
the  Tenth  Annual  Meeting  of  the  National  Association  for  the  Study  and  Pre- 
vention of  Tuberculosis,  Washington,  D.  C.,  May  7-8,  1914.  Transactions, 
pp.  47-50. 

Rector,  F.  L.  Physical  Examination  of  Industrial  Workers.  Journal  of  the 
American  Medical  Association,  December  18,  1920,  v.  75,  pp.  1739-1741.  Re- 
print, p.  2. 

Schereschewsky,  J.  W.  Medical  Examination  of  Employees  as  a  part  of  Industrial 
Insurance.  Address  at  the  Tenth  Annual  Meeting  of  the  National  Association 
for  the  Study  and  Prevention  of  Tuberculosis,  Washington,  D.  C.,  May  7-8, 
1914.  Transactions,  pp.  51-54. 

Sachs,  T.  B.  The  Campaign  in  Chicago  for  Medical  Examinations  of  Employees. 
Address  at  the  Tenth  Annual  Meeting  of  the  National  Association  for  the  Study 
and  Prevention  of  Tuberculosis,  Washington,  D.  C.,  May  7-8,  1914.  Trans- 
actions, pp. 35-38. 

Farnum,  C.  G.  The  Scope  of  Medical  and  Surgical  Supervision.  Read  at  a  meet- 
ing of  the  American  Association  of  Industrial  Physicians  and  Surgeons,  Detroit 
Michigan,  June  12,  1916,  Proceedings,  pp.  19-23. 

—  The  Relationship  of  Impaired  Physical  Condition  to  Accidents.  Read 
before  the  Section  on  Industrial  Hygiene  of  the  American  Public  Health  Asso- 
ciation, 43d  Annual  Meeting,  Rochester,  N.  Y.,  September  9,  1915. 
Harris,  L.  I.  and  L.  I.  Dublin.  The  Health  of  Food  Handlers.  A  co-operative 
Study  by  the  Department  of  Health,  the  Metropolitan  Life  Insurance  Company 
and  the  American  Museum  of  Safety.  Monograph  Series  No.  17  of  the  Depart- 
ment of  Health  of  the  City  of  New  York,  August,  1917. 

1  Great.  Britain — Inter-Departmental  Committee.    Report  on  Physical  Deteriora- 

tion, 1904. 

Great  Britain. — Physical  Training  Commission.     Report  on  Scotland,  1904. 
Great  Britain. — Ministry  of  National  Service.     Report  v.  1,  1917-1919,  upon  the 

Physical  Examination  of  Men  of  Military  Age  by  National  Service  Medical 

Boards  from  November  1,  1917-October  31,  1918.     London;    His  Majesty's 

Stationery  Office,  1920,  p.  6-23,  66,  75,  85. 

2  U.  S  —  Bureau  of  the  Census.    United  States  Life  Tables,  1910.     Washington; 

Government  Printing  Office,  1916.    p.  18-19. 
American  Experience  Table  of  Mortality. 


346 


WASTE  IN  INDUSTRY 


The  length  of  the  period  or  "  spans  "  of  mature  life — after  adolescence 
—varies  greatly  according  to  the  aspect  from  which  it  is  viewed.  The  four 
following  "  spans  "  have  been  generally  distinguished: 

The  Health  Span,  or  period  of  physical  freedom  and  full  vigor  after  maturity; 

ages  18  to  31. 
The  Work  Span,  or  period  when  men  can  compete  in  industry  on  a  fair  basis  of 

equality;  ages  20  to  42. 
The  Military  Span,  or  ages  at  which  men  are  eligible  for  active  military  service; 

ages  18  to  42. 

(Britain  raised  the  age  to  50  late  in  the  war  but  accepted  very  few  at  that  age.) 
The  Biblical  or  Traditional  Life  Span,  extending  to  age  70. 

AGES 

40          50         60 


(18-31)  HEALTH  SPAN  or  Period  of  Physical  Freedom  and  Full  Vigor 
(20-42)WORK  SPAN  or  Period  of  Maximum  Productivity  in  Industry 

FIG.  1. 


The  median  age  at  death  is  60,  according  to  the  United  States  Life 
Table,  1910.  (This  is  the  age  at  which  one-half  of  a  group  of  even  age 
will  be  dead.)  The  most  appalling  feature  of  this  evidence  is  the  brief 
duration  of  the  Health  Span  and  Work  Span  compared  to  the  Life  Span. 
Insurance  tables  end  at  95 — Census  Life  Table  at  106. 

During  the  period  of  active,  vigorous  industrial  life,  ages  20  to  40, 
the  death  rate  rises  in  the  United  States  166%.1 

This  explains  why  42  was  fixed  as  the  extreme  limit  for  active  military 
service  in  Great  Britain  until  over-age  men  were  taken,  and  has  often  been 
fixed  as  the  limit  for  acceptance  for  active  industrial  service.  (The 
formal  military  age  limits  are  18  to  45,  but  no  country  calls  men  above 
40  for  active  service  if  it  can  avoid  it.) 

1U.  S.— Bureau  of  the  Census.     United  States  Life  Tables,  1910.     Washington: 

Government  Printing  Office,  1916. 
Fisk,  Eugene  Lyman.     Diseases  of  Mature  Life.    Read  at  the  Annual  Conference 

of  Sanitary  Officers,  New  York  State  Department  of  Health,  Saratoga  Springs, 

June  25,  1919 


HEALTH  OF  INDUSTRIAL  WORKERS  347 

The  significance  of  these  movements  in  mortality  is  made  clear  in  the 
military  records  of  this  and  other  countries. 

The  rise  of  the  rejection  rate  for  military  service  is  consistent  with 
the  rise  in  the  death  rate  as  age  advances.  For  example,  in  Great  Britain 
an  analysis  of  a  representative  group  of  10,000  men  examined  for  service 
showed  the  following  ratios  i1 

Ages 18            23  40 

Rejection  rate 22%        48%  69% 

Increase  over  age  18. +118%  +213% 

2  Death  rate  per  1000  England  and  Wales  191 1-1912..     3          3.8  8.1 

Increase  over  age  18 +26%  +170% 

The  rising  death  rate  after  age  18  (actually  it  commences  at  12) 
reflects  the  cumulative  effect  of  various  factors  in  the  environment  acting 
upon  the  organism.  Its  resistance  depends  upon  inherited  constitution 
and  the  nurture,  training  and  protection  that  has  been  afforded  and 
maintained  from  childhood  onward.  This  increase  in  the  death  rate 
and  the  ratio  of  physical  defects  is  not  the  result  of  a  fixed  biological 
law  but  of  ignorance  and  neglect.3 

In  this  country,  a  study  of  ages  21  to  30  showed  an  increase  of  30% 
in  the  rejection  rate  over  that  for  age  21  for  military  service,4  which  is 
entirely  consistent  with  British  figures. 

The  rejection  rate  for  active  military  service  (Group  A),  ages  21  to 
31,  for  the  whole  number  in  the  United  States  draft  is  not  known,  but 
has  been  estimated  by  the  Surgeon  General's  office  as  approximately  28%, 6 
although  there  is  reason  to  believe  it  was  higher.  It  was  33%  in  the 
first  draft.6 

1  Comrie,  John  D.     An  Analysis  of  Physical  Defects  Among  the  General  Male 

Population,  Based  upon   10,000  Recruit  Examinations.     Lancet  (London), 
November  29,  1919.    p.  957-960. 

2  Great  Britain.— Life  Table  No.  8. 

3  Loeb,  Jacques.    The  Organism  as  a  Whole.     New  York;  Putnam,  1916. 

—  The  Mechanistic  Conception  of  Life.     Chicago;  University  of  Chicago  Press, 

1912. 

Schaefer,  E.  A.     Life;  Its  Nature,  Origin  and  Maintenance.     London,  Longmans, 
Green  &  Co.,  1912. 

4  U.  S. — Provost  Marshal  General.    Second  Report  to  the  Secretary  of  War  on  the 

Operations  of  the  Selective-Service  System  to  December  20, 1918.    Washington ; 
Government  Printing  Office,  1919,  p.  161,  Table  55. 

5  Love,  Albert  G.  and  Charles  B.  Davenport.     Defects  Found  in  Drafted  Men 

Statistical  Information  Compiled  from  the  Draft  Records  Showing  the  Physical 
Condition  of  the  Men  Registered  and  Examined  in  Pursuance  of  the  Require- 
ments of  the  Selective-Service  Act.  Under  Direction  of  Surgeon  General 
M.  W.  Ireland,  U.  S.  War  Department,  Washington;  Government  Printing 
Office,  1920,  Table  3,  p.  46  and  Table  1,  p.  417. 
Davenport,  Charles  B.  Personal  Communication. 

6  U.  S. — Provost  Marshal  General.    Second  Report  to  the  Secretary  of  War  on  the 


348  WASTE  IN  INDUSTRY 

In  Great  Britain  the  rejection  rate  for  ages  18-42  was  64%.  Only 
36%  were  accepted  in  Grade  1  as  eligible  for  full  active  military  service, 
22%  in  Grade  2;  31%  in  Grade  3;  10%  in  Grade  4.  (This  report  covers 
the  examination  of  2,425,184  men  of  military  age — 18-42.)1 

The  British  Committee,  commenting  on  these  figures,  has  this  to  say :  2 

"  These  four  inferences  may  be  summarized  by  saying  that  medical 
examinations  showed  that,  of  every  nine  men  of  military  age  in  Great 
Britain,  on  the  average  three  were  perfectly  fit  and  healthy;  two  were 
upon  a  definitely  infirm  plane  of  health  and  strength,  whether  from  some 
disability  or  failure  in  development;  three  were  incapable  of  undergoing 
more  than  a  very  moderate  degree  of  physical  exertion  and  could  almost 
(in  view  of  their  age)  be  described  with  justice  as  physical  wrecks,  and  the 
remaining  man  as  a  chronic  invalid,  with  a  precarious  hold  upon  life." 

Is  Man  Physically  Deteriorating?  The  problem  as  to  whether  the 
physical  state  of  civilized  man  is  deteriorating  is  obscured  by  many 
complex  factors.  It  is  apparently  negatived  by  the  increased  expectation 
of  life  in  all  civilized  countries  and  the  progressive  fall  in  the  general 
death  rate. 

For  example,  in  the  United  States  registration  area,  the  general  death 
rate  has  fallen  from  17.6  per  thousand  in  1900  to  12.9  per  thousand  in 
1919.3 

In  Great  Britain 4  and  Sweden 5  and  other  European  countries 
there  has  been  similar  improvement  in  the  death  rate  at  practically  all 
ages  of  life,  but  chiefly  at  the  younger  ages. 

It  is  notable  that  the  death  rate  from  organic  diseases  is  greater  in  this 
country  than  in  England  and  Wales  and  that  death  in  the  middle  age  of 
life  is  now  likewise  greater,  although  not  formerly  so.6 

Operations  of  the  Selective-Service  System  to  December  20,  1918.  Washing- 
ton; Government  Printing  Office,  1919,  p.  162,  Table  57. 

1  Great  Britain. — Ministry  of  National  Service.    Report  v.  1,  1917-1919,  upon  the 

Physical  Examination  of  Men  of  Military  Age  by  National  Service  Medical 
Boards  from  November  1,  1917-October  31,  1918.  London;  His  Majesty's 
Stationery  Office,  1920,  p.  4. 

2  Ibid. 

3  U.  S—  Bureau  of  the  Census.     Mortality  Statistics,  1919,  Washington;   Govern- 
ment Printing  Office,  1921,  p.  9. 

4  Great  Britain.— Registrar  General.    79th  Annual  Report,  1916,  p.  8-9. 

Fisher,  Irving  and  Eugene  Lyman  Fisk.  How  to  Live.  New  York;  Funk  & 
Wagnalls,  1921,  p.  384. 

6  Sweden.— Report  Royal  Central  Bureau  of  Statistics,  Stockholm;  1916.  Mortality 
Extension  Tables,  1916. 

Fisher,  Irving  and  Eugene  Lyman  Fisk.  How  to  Live.  New  York;  Funk  & 
Wagnalls,  1921,  p.  389. 

6  Fisher,  Irving  and  Eugene  Lyman  Fisk.  How  to  Live.  New  York;  Funk  & 
Wagnalls,  1921,  p.  378-380. 

Hoffman,  Frederick  L.  Recent  Statistics  of  Heart  Disease.  Journal  of  the 
American  Medical  Association,  May  15,  1920,  v.  74,  p.  1364. 


HEALTH  OF  INDUSTRIAL  WORKERS 


349 


ANALYSIS  OF  SEVEN  LOCAL  BOARDS  IN  DETROIT,  BROOKLYN  AND  NEW  YORK 
(SUBURBAN  AND  CITY).  1 


Number 

Percentage 
of  Those 
Examined 

Number  of  men  called  

8  875 

Number  of  men  examined 

7  611 

Number  of  men  discharged  for  physical  reasons 

2232 

29 

Prominent  Causes  of  Rejection: 
Defective  eyes  

462 

6 

Defective  teeth 

366 

4  8 

Underweight                            ....        .    .                ... 

350 

4  6 

Hernia                   .        

223 

2  9 

Heart  defects  

184 

2  4 

180 

2  3 

Injured  or  amputated  limbs 

169 

2  2 

Ear  defects                                   .                            .... 

88 

1  2 

Tuberculosis  of  lungs   

77 

1 

Tuberculosis  of  joints  

2 

Undersize  

53 

.7 

Genito-urinary  bladder  etc 

37 

5 

Varicose  veins 

35 

4 

Overweight                               ....        .        

32 

4 

Syphilis         

32 

.4 

Varicocele  

28 

.3 

38 

5 

Asthma  bronchitis  etc 

21 

3 

Mental  and  insane                      .        ...        

14 

.2 

Debility  and  poor  physique  

16 

.2 

Miscellaneous  injuries  

15 

.2 

Hemorrhoids  and  fistula 

18 

24 

Kidney  disease 

10 

.1 

Rheumatism     .            .    .                                         

8 

.1 

Epilepsy  

7 

.1 

Miscellaneous  defects  

7 

.1 

1  Fisher,  Irving  and  Eugene  Lyman  Fisk.  How  to  Live.  New  York;  Funk  & 
Wagnalls,  1921,  p.  400^01. 

Fisk,  Eugene  Lyman.  Some  Lessons  from  the  Recent  Draft  Examinations. 
Address  before  Section  1,  American  Association  for  the  Advancement  of  Science,  Decem- 
ber 31,  1917.  Journal  American  Medical  Association,  February  2,  1918,  v.  70,  No.  5, 
p.  300 -303. 


350 


WASTE  IN  INDUSTRY 


ORGANIC  HEART  DISEASE  AND  ACUTE  NEPHRITIS  AND  BRIGHT'S  DISEASE  DEATH 
RATE  PER  1000  POPULATION  BY  AGE  GROUPS  IN  THE  REGISTRATION  AREA  1910 
MALES  ONLY.  COMPARED  WITH  ENGLAND  AND  WALES.  191 1.1 


Per  Cent 

U.S. 

England 
and  Wales 

Excess  of 
United  States 
Over  England 
and  Wales 

All  Ages 
2-4 

2.548 
0.240 

1.629 
0.115 

36.06 
52.08 

5-14 

0.247 

0.167 

32.38 

15-24 

0.367 

0.278 

24.25 

25-44 

1.080 

0.715 

33.79 

45-64 

5.303 

3.939 

25.72 

65  and  over 

26.23 

14.83 

43.46 

DEATH  RATE  PER  1,000  POPULATION  BY  AGE  IN  THE  REGISTRATION  AREA  1910. 
ENGLAND  AND  WALES.     1911. 2 


Per  Cent 

U.S. 

England 
and  Wales 

Excess  of 
United  States 
Over  England 

and  Wales 

All  ages 

15.96 

15.58 

2.38 

2-4 

9.34 

9.96 

-6.63 

5-14 

3.12 

2.77 

11.25 

15-24 

5.09 

3.42 

32.80 

25-44 

8.79 

6.39 

27.30 

45-64 

21.42 

20.54 

4.10 

65  and  over 

85.13 

85.65 

-.06 

In  the  United  States,  the  improvement  is  limited  to  the  early  ages; 
after  age  50  there  is  little  evidence  of  improvement  and  some  evidence 
of  an  increasing  mortality  is  exhibited  in  a  number  of  studies.3 

There  is  evident  need  to  combat  the  chronic  organic  maladies  that 
limit  the  Working  Span  and  are  not  now  systematically  attacked  as  are 
typhoid,  tuberculosis  and  venereal  diseases  4  and  cancer. 

1U.  S.— Bureau  of  the  Census.  Mortality  Statistics,  1918,  Washington;  Govern- 
ment Printing  Office,  1920,  p.  17. 

2  Ibid. 

3  Fisher,  Irving  and  Eugene  Lyman  Fisk     How  to  Live.     New  York;    Funk  & 
Wagnalls,  1921,  p.  378-380. 

4  Hoffman,  Frederick  L.    Recent  Statistics  of  Heart  Disease.    Journal  of  the  Ameri- 
can Medical  Association,  May  15,  1920,  v.  74,  p.  1364. 


HEALTH  OF  INDUSTRIAL  WORKERS  351 

The  recent  organization  of  the  Association  for  the  Prevention  and 
Relief  of  Heart  Disease  and  the  organization  of  cardiac  clinics,  show  a 
growing  recognition  of  this  need.1 

Morbidity  Rates. — From  the  death  rate  we  turn  to  the  sick  rates  for 
further  light  on  the  condition  of  the  population. 

In  the  report  on  National  Vitality  prepared  by  Professor  Irving  Fisher 
for  the  National  Conservation  Commission  appointed  by  President 
Roosevelt  in  1909,  it  was  estimated  that  there  were  about  3,000,000  persons 
seriously  ill  at  all  times  in  the  United  States  and  that  42%  of  this  illness 
was  preventable  with  a  resulting  extension  of  life  of  over  15  years.2 

Even  in  the  short  period  of  time  since  that  report  was  issued  a  measure 
of  this  reduction  has  been  noted.  The  estimate  of  13  days  annual 
loss  from  illness  must  now  be  reduced  to  approximately  7.  The  duration 
of  life  has  actually  been  extended  probably  a  period  of  five  years.  The 
Life  Tables  for  1910  for  the  original  registration  states  were  the  first 
reliable  life  tables  issued  based  upon  the  mortality  in  the  registration 
states  and  can  be  compared  only  with  separate  life  tables  such  as  those 
of  Massachusetts,  where  the  expectation  of  life  in  the  first  year  of  life  has 
increased  among  males  from  44  years  (1893-7)  to  49  years  (1910)  and 
among  women  from  46  years  (1893-7)  to  53  years  3  (1910). 

While  it  is  not  now,  and  never  has  been  possible  to  collect  complete 
and  mathematically  accurate  morbidity  statistics  for  the  entire  country, 
nevertheless  critical  studies  of  special  groups  in  the  population  enable 
us  to  approximate  the  morbidity  rate  in  the  general  population  and  in 
industry.  Changes  that  have  taken  place  in  the  death  rates  from  some 
of  the  principal  diseases  that  contributed  to  the  morbidity  rate  when  the 
report  on  National  Vitality  was  issued,  furnish  consistent  and  confirma- 
tory evidence  of  the  fact  suggested  by  the  morbidity  surveys  herein 
quoted,  that  there  is  now  less  disability  and  sickness  present  than  there 
was  even  fifteen  years  ago. 

Investigations  of  the  United  States  Commission  on  Industrial  Rela- 
tions in  1913-15  which  cover  a  survey  of  the  sickness  prevalent  among 
approximately  a  million  workers  of  representative  occupations,  revealed 
an  average  loss  to  more  than  30,000,000  American  wage-earners  of  about 
nine  days  per  year.4 

1  Association  for  the  Prevention  and  Relief  of  Heart  Disease.    First  Report,  covering 
the  period  from  its  incorporation,  December  18,  1915  to  January  1,  1921.     (Office 
of  the  Association,  325  East  75th  Street,  New  York  City.) 

2  Fisher,    Irving.    Report   on   National   Vitality,    Its   Wastes  and  Conservation. 
Washington;  Government  Printing  Office,  1909,  p.  12. 

3  Massachusetts.— Report  State  Board  of  Health,  1898,  p.  822-825  (figures  for  1893- 
1897);  Life  Tables  State  of  Massachusetts,  U.  S.  Census,  1910,  p.  50-53  (figures  for 
1910.) 

4  U.  S. — Commission  on  Industrial  Relations.     Final  Report,  1 913-1915,  v.  1,  p.  124. 


352  WASTE  IN  INDUSTRY 

The  Social  Insurance  Commission  of  California,  reporting  in  1917, 
estimated  an  average  annual  loss  to  wage-earners  on  account  of  sickness 
of  six  days.1 

The  Dallas  Wage  Commission  in  1919  estimated  an  average  loss  of 
6.8  days.2 

The  Metropolitan  Life  Insurance  Company,  through  a  sickness  census 
of  policyholders  and  others,  people  of  small  means  in  industrial  life, 
637,038  white  and  colored  persons,  reported  loss  during  the  working  year 
as  follows:  males  6.8  days;  females  6.9  days.3 

These  rates,  of  course,  varied  with  the  age  of  the  individual  and  just 
as  consistently  as  does  the  death  rate  or  the  rejection  rate  for  military 
service. 

The  following  chart  exhibits  this  curve  and  should  be  compared 
with  the  charts  herein  produced  showing  the  curve  of  the  death  rate  and  the 
curve  of  military  rejections.4 

It  will  be  noted  that  the  sick  rate  at  age  35  to  44  is  nearly  double  the 
rate  for  15  to  24,  a  difference  closely  approximating  that  found  in  the 
mortality  tables  and  in  the  tables  exhibiting  the  rejection  rate  or  the 
actual  physical  status  of  individuals  at  those  ages. 

Sydenstricker  is  of  the  opinion  that  between  8  and  9  days  annual  loss 
from  sickness  is  a  justifiable  estimate  based  on  the  United  States  public 
health  investigations  (unpublished  data).5 

Official  commissions  investigating  sickness  conditions  in  Ohio  and 
Illinois  in  1919,  found  that  the  loss  of  time  by  wage-earners  will  average 
between  8  and  9  days  per  year  for  each  wage-earner  in  the  entire  group.6 
Quinby  at  the  Hood  Rubber  Company  found  a  sick  rate  of  6.6  days.7 

The  fall  in  the  general  death  rate  in  the  registration  area  from  1907 
to  1917  is  2.3  per  thousand,  indicating  a  saving  of  240,000  lives  in  1917. 8 
On  the  basis  of  2  people  ill  for  every  death,  there  would  be  a  saving  of 
about  500,000  cases  of  illness.  The  sickness  rates  actually  determined  in 
recent  studies  show  that  2j%  of  wage-earners  are  constantly  ill  to  an 

1  California. — Report  Social  Insurance  Commission,  1917,  p.  15. 

2  Texas.— Report  Dallas  Wage  Commission,  1919. 

3  Stecker,  Margaret  Loomis.    Some  Recent  Morbidity  Data:  A  Summary  of  Seven 
Community  Sickness  Surveys  made  among  Policyholders  of  the  Metropolitan   Life 
Insurance  Company,   1915  to  1917.     New  York;    Metropolitan  Life  Insurance  Com- 
pany, 1919,  p.  28,  tab. 

4  Ibid. 

s  U.  S.— Public  Health  Service.    Unpublished  data. 

6  Ohio.— Report  Health  and  Old  Age  Insurance  Commission,  1919,  p.  56. 
Illinois. — Report  Health  Insurance  Commission,  1919,  p.  11. 

7  Quinby,  R.  S.    A  Study  of  Industrial  Absenteeism.     Read  at  Annual  Meeting  of 
Industrial  Physicians  and  Surgeons,  Boston,  June  7.  1921. 

8  U.  S.— Bureau  of  the  Census.     Mortality  Statistics  1918.     Washington     Govern 
ment  Printing  Office,  1920,  p.  9. 


HEALTH  OF  INDUSTRIAL  WORKERS 


353 


extent  to  be  incapacitated.    This  would  justify  an  estimate  of  approxi- 
mately 2,400,000  people  continually  ill  instead  of  3,000,000. 

Possibility  of  Further  Improvement. — These  fluctuations  in  mortality 
and  in  the  morbidity  rate  from  certain  types  of  disease  lend  consistent 
support  to  the  principle  derived  from  clinical  observation,  laboratory 


105 
100 
95 
90 
85 

PATE  PERK 

00  WHITE  Ll\ 

ES  BY  SEX  A 

VP  BYA&e  PI 

RIOD 

1 

1 

1 

1 

1    I 

15 
10 
65 

55 

45 
40 
35 
30 
25 
20 
15 

1     1 

1    / 

1     1 

1   / 

1  j 

t 

'   1 

J 

1 

/$ 

; 

/<y 

/^ 

r 

^ 

f 

^^•~ 

-^^ 

'^—-  

5 

\ 

nder!5   15to24          25to34        3>5to44         45to54         5Sto64      65andover 
Age  Periods 

FIG.  2. 

observation  and  biological  research  that  the  life  cycle  of  man  and  the 
subdivisions  we  have  designated  the  Health  Span  and  Work  Span  are  not 
fixed. 

While  it  is  wholly  beyond  the  bounds  of  possibility  to  extend  the  human 
life  cycle  to  the  same  degree  that  it  has  been  extended  in  the  lower  organ- 
isms, the  factors  that  shorten  the  human  life  cycle  are  practically  identical 


354  WASTE  IN  INDUSTRY 

with  those  which  have   been  successfully  combated  in  dealing  with  the 
lower  organisms.1 

These  factors  may  be  grouped  under  the  following  categories  and  will 
be  found  to  cover  every  type  of  influence  that  tends  not  only  to  shorten 
human  life  but  to  produce  physical  impairment  and  lower  the  working 
capacity. 

Heredity;  Hormone  Excess; 

Infection;  Physical  Trauma  or  Strain; 

Poison;  Psychic  Trauma  or  Strain; 

Food  Deficiency;  Physical  Apathy; 

Food  Excess;  Psychic  Apathy. 
Hormone  Deficiency; 

Can  the  possible  economic  and  human  savings  from  the  practical 
application  of  these  principles  be  given  quantitative  expression? 

The  following  exhibit  attempts  to  answer  this  question  conservatively. 


DEMONSTRATION  OF  POSSIBLE  SAVINGS  FROM  HEALTH  SUPERVISION  AND  PERIODIC 
PHYSICAL  EXAMINATION  2 

Expected  mortality  per  1,000  in  population  examined;    conservative 

figure  for  average  population  at  work 10  lives 

Probable  number  of  substandard  or  physically  impaired  lives  per  1,000 

in  population  examined 300     ' ' 

Expected  mortality  without  examination  per  300  substandard  lives ...  6  ' 

Probable  mortality  with  examination  per  300  substandard  lives 3  ' 

Gain  in  mortality  (lives  per  annum)  in  substandard  group 3  ' 

Add  at  least  one  life  saved  in  standard  group 1  life 

Economic  value  of  average  life $5,000 

1  Loeb,  Jacques.     Natural  Death  and  the  Duration  of  Life.    Scientific  Monthly, 
December,  1919,  v.  9,  No.  6,  p.  578. 

Carrel,  Alexis.  Present  Condition  of  a  Strain  of  Connective  Tissue  Twenty-eight 
Months  Old.  Journal  of  Experimental  Medicine,  July  1,  1914,  v.  XX,  No.  1,  p.  1. 

Fisk,  Eugene  Lyman.  Prolonging  Human  Life.  Yale  Review,  July,  1920,  v.  9, 
pp.  699-713. 

—  On  Prolonging  Human  Life.     North  American  Review,  July,  1920,  v.  212, 
No.  1,  pp.  51-62. 

2  Dublin,  Louis  I.    Personal  communication. 

Jackson,  C.  W.  The  Influence  of  Medical  Re-Examination  on  Insured  Lives: 
Health  Conservation.  Paper  read  before  the  Actuarial  Society  of  America,  Boston, 
Mass.,  October  16,  1913.  Transactions,  pp.  321-325. 

Fisk,  Eugene  Lyman.  The  Possible  Function  of  the  Life  Insurance  Company  in 
the  Conservation  of  Health.  Address  before  the  Section  on  Social  and  Eco- 
nomic Science,  American  Association  for  the  Advancement  of  Science,  Cleveland, 
Ohio,  January  3,  1913.  Reprint,  Postal  Life  Insurance  Company,  New  York. 


HEALTH  OF  INDUSTRIAL  WORKERS  355 

(Formula  of  Dublin  and  Whitney  based  on  exact  computation  of 
basic  factors,  increment  of  wealth,  etc.  Value  of  1  year  of  life 
$100X50  (average  lifetime)  1  ($5,000,  economic  vame  of  average 
life). 

Mortality  gain  to  State  for  each  1,000  examined  (4  live?X$5000)  2.. .  $20,000 

Assuming  2  people  constantly  ill  for  each  death  occurring  in  group, 
the  saving  of  4  lives  means  the  elimination  of  8  cases  of  chronic 
illness  from  the  group,  or  a  reduction  of  8X365,  or  2,920  days  of 
iilness.  At  a  medical,  nursing  and  extra  diet  cost  for  illness  of  $3 
per  day,  the  saving  equals  about $9,000 


Profit  to  State  and  community  per  1,000  of  population $29,000 

Applying  this  factor  to  a  population  of  105,000,000  which  would  exclude 
the  extremely  aged  and  infirm  who  would  not  come  under  the  opera- 
tion of  these  formulae,  we  have  the  following  exhibit: 

105,000,000  X$29  equals  about $3,045,000,000 

What  would  be  the  cost  of  applying  a  system  of  periodic  examination 
to  the  entire  population? 

If  there  were  thorough  organization  of  such  work  the  cost  would  not 
exceed  $5  per  individual — a  total  of $525,000,000 


leaving  an  economic  balance  of $2,520,000,000 

Assuming  that  one-third  of  the  substandard  cases  revealed  by  these 
examinations  or  about  10,000,000  required  medical,  surgical  or 
dental  treatment  at  a  cost  of  $100  per  case,  the  cost  of  this  repair 
work  would  aggregate $1,000,000,000 


leaving  a  net  margin  of  economic  gain  of $1,520,000,000 

also  excess  dividends  in: 

Health; 

Happiness; 

Satisfaction  in  Living; 

Prevention  of  Pain; 

Prevention  of  Sorrow; 

Prevention  of  Discontentment;  and 

Industrial  Unrest. 

It  should  be  remembered  that  these  formulae  are  derived  from  actual 
experience  in  carefully  studied  groups  and  are  not  based  upon  mere 
estimates  by  authorities.  They  agree,  however,  in  many  particulars 
with  the  expert  opinion  grouped  in  the  Report  on  National  Vitality 
where  a  probable  economic  loss  of  $1,500,000,000  from  preventable  disease 

1  Dublin,  Louis  I.  and  Jessamine  Whitney.     On  the  Cost  of  Tuberculosis.     Ameri- 
can Statistical  Association  Quarterly,  December,  1920,  v.  17,  p.  441-50. 

Glover,  James  W.  Monetary  Loss  in  the  United  States  due  to  Tuberculosis. 
Proceedings  of  the  Sixth  International  Congress  on  Tuberculosis,  Section  6,  1908, 
pp. 55-87. 

2  Fisher,    Irving.     Report   on    National   Vitality,    Its    Wastes   and  Conservation. 
Washington;  Government  Printing  Office,  1909,  p.  34. 


356  WASTE  IN  INDUSTRY 

and  death  was  estimated,  based  on  the  concensus  of  opinion  of  leading 
medical  authorities.1 

It  was  then  stated  that  this  estimate  was  very  conservative  and  might 
well  be  exceeded  by  the  cost  from  tuberculosis  alone  which  had  been 
figured  at  $1,000,000,000.  A  recent  analysis  of  the  question  by  Dublin 
and  Whitney  gives  the  annual  loss  from  the  tuberculosis  death-rate 
alone  of  more  than  $500,000,000,  exclusive  of  such  items  as  sickness 
costs.2  The  annual  loss  from  typhoid  fever  is  $135,000,000.3 

The  figures  herein  presented  relate  to  savings  that  have  been  effected 
in  representative  groups  solely  by  the  operation  of  a  system  of  periodic 
examination,  general  instruction  and  guidance  in  hygiene  and  information 
as  to  needed  medical  treatment.  The  saving  from  other  causes  such  as 
public  health  administration  is,  of  course,  not  included. 

To  these  possible  savings  from  overhauling  the  human  machine  and 
instructing  it  in  self-government  must  be  added  the  possible  savings  from 
community  hygiene,  from  state  and  federal  organization  for  protection 
of  the  mass  of  citizens  from  epidemic  infection,  from  endemic  infection, 
from  impure  food;  the  organization  of  industry  to  improve  the  environ- 
ment of  the  worker,  safety  provision  and  safety  education.  The  influence 
herein  dealt  with  has  been  chiefly  that  of  personal  hygiene  and  guidance. 

With  better  organized  facilities  in  the  medical  profession  to  follow 
up  and  co-operate  with  the  agencies,  whether  private,  state  or  national, 
that  provide  these  periodic  examinations,  a  much  greater  saving  could 
be  accomplished. 

The  experiential  sources  of  information  on  which  these  statements 
are  based  are  as  follows: 

1 .  The  degree  of  impairment  or  substandard  physical  condition  in  the  population  is 
known  through: 

(a)  Physical  examination  of  175,000  by  the  Life  Extension  Institute.4 
(6)  Examination  for  employment  in  industry.6 

1  Fisher,  Irving.  Report  on  National  Vitality,  Its  Wastes  and  Conservation.  Com- 
mittee of  One  Hundred  on  National  Health.  Bulletin  No.  30.  Washington;  Gover- 
nment Printing  Office,  1909,  p.  1  and  104-106. 

1  Dublin,  Louis  I.  and  Jessamine  Whitney.  On  the  Cost  of  Tuberculosis.  Ameri- 
can Statistical  Association  Quarterly,  December,  1920,  v.  17,  pp.  441-450. 

3  Gay,  Frederick  P.   Typhoid  Fever  Considered  as  a  Problem  of  Scientific  Medicine. 
New  York;  Macmillan,  1918,  p.  23. 

4  Fisk,  Eugene  Lyman.     Conservation  of  Man  Power.    Address  before  the  Trust 
Company    Section    American    Bankers     Association,    Twenty-third    Annual    Meet- 
ing, Chicago,  111.,  September  23-24,  1918.     Proceedings,  1918,  pp.  397-404. 

*  Schereschewsky,  J.  W.  Studies  in  Vocational  Diseases— The  Health  of  Garment 
Workers,  United  States  Public  Health  Bulletin  No.  71,  Washington;  Government 
Printing  Office,  1915. 

Medical  Examination  of  Employees  as  a  Part  of  Industrial  Insurance. 

Address  at  the  Tenth  Annual  Meeting  of  the  National  Association  for  the  Study 


HEALTH  OF  INDUSTRIAL  WORKERS  357 

(c)  Draft  and  military  records.1 

(d)  Framingham  Community  Health  Demonstration.2 

2.  The  expected  mortality  on  most  of  these  substandard  classes  is  known  from  the 
experience  of  life  insurance  companies  that  extend  back  a  quarter  of  a  century  on 
many  thousands  of  lives  insured  at  rated  up  premiums.3 

3.  The  extent  to  which  the  death  rate  can  be  reduced  in  these  classes  both  standard 
and  substandard  by  a  system  of  periodic  examination  or  instructions  alone 
without  special  provision  for  treatment,  is  known  through  the  experience  on  a 
group  of  policyholders  in  one  company  that  followed  such  an  experiment  for  a 
period  of  seven  years  and  showed  more  than  50%  reduction  in  mortality  among 
those  examined  and  found  impaired.4 

The  welfare  work,  nursing  service,  health  education,  etc.,  carried 
on  by  another  company  has  been  estimated  as  saving  38,000  lives  in 

and  Prevention  of  Tuberculosis,  Washington,  D.  C.,  May  7-8,  1914.  Transactions 
pp.  51-54. 

Mock,  H.  E.  An  Efficient  System  of  Medical  Examination  of  Employees. 
Address  at  the  Tenth  Annual  Meeting  of  the  National  Association  for  the  Study 
and  Prevention  of  Tuberculosis,  Washington,  D.  C.,  May  7-8,  1914.  Transactions, 
pp.  39-46. 

Clark,  W.  I.  Medical  Supervision  of  Factory  Employees.  Journal  of  the  Ameri- 
can Medical  Association,  February  15,  1913,  v.  LX,  No.  7,  pp.  508-510. 

1  Love,  Albert  G.  and  Charles  B.  Davenport.     Defects  Found  in  Drafted  Men. 
Statistical  Information  Compiled  from  the  Draft  Records,  Showing  the  Physical  Condi- 
tion of  the  Men  Registered  and  Examined  in  Pursuance  of  the  Requirements  of  the 
selective  Service  Act.     Under  Direction  of  Surgeon  General  M.  W.  Ireland,  U.  S. 
War  Department.     Washington;   Government  Printing  Office,  1920,  pp.  28-55. 

U.  S. — Provost  Marshal  General.  Second  Report  to  the  Secretary  of  War  on  the 
Operations  of  the  Selective  Service  System  to  December  20,  1918.  Washington;  Gov- 
ernment Printing  Office,  1919,  p.  161,  table  55. 

Great  Britain. — Ministry  of  National  Service.  Report  Upon  the  Physical  Examina- 
tion of  Men  of  Military  Age  by  National  Service  Medical  Boards  from  November  1, 
1917  to  October  31,  1918,  v.  1,  1917-1919.  London,  His  Majesty's  Stationery  Office, 
1920,  p.  4. 

2  Armstrong,   Donald  B.     Framingham  Monographs  No.  2   (June,  1918),   No.  4 
(November,  1918)  and  No.  5  (March,  1919).     National  Tuberculosis  Association. 

3  Hunter,  Arthur.      Can  Insurance  Experiences  be  Applied  to  Lengthen  Life?    Ad- 
dress delivered  at  the  Eighth  Annual  Meeting  of  the  Association  of  Life  Insurance 
Presidents,  New  York,  December  10,  1914.     Proceedings,  1914,  pp.  27-37. 

and  Oscar  H.  Rogers.  Influence  of  Occupations  upon  Mortality.  Trans- 
actions of  the  Actuarial  Society  of  America,  May,  1920 

Rogers,  Oscar  H.  Heart  Murmurs — Their  Influence  on  Mortality.  Transactions 
of  the  Actuarial  Society  of  America,  May,  1919. 

4  Jackson,  C.  W.     The  Influence  of  Medical  Re-Examination  on  Insured  Lives: 
Health  Conservation.     Paper  read  before  the  Actuarial  Society  of  America,  Boston, 
Mass.,  October  16,  1913.    Transactions,  pp.  321-325. 

Knight,  Augustus  S.,  M.D.  President's  Address,  Assn.  Life  Ins.  Med.  Dirs.,  Oct. 
20,  1921.  Reprint,  Metropolitan  Life  Ins.  Co. 

Fisk,  Eugene  Lyman.  Proceedings  American  Association  for  the  Advancement 
of  Science,  January  3,  1913.  Reprint  Postal  Life  Insurance  Company,  New  York. 


358  WASTE  IN  INDUSTRY 

1920.1  The  economic  value2  of  these  lives  is  at  least  $190,- 
000,000. 

The  savings  postulated  under  this  system  of  periodic  examination 
(4  lives  per  1,000  living)  if  attained  would  alone  bring  the  death  rate  in 
the  registration  area  down  to  about  11  per  thousand  (a  not  unreasonable 
expectation  when  it  is  considered  that  the  death  rate  has  already  been 
reduced  since  1900  by  approximately  that  same  number  of  lives — 4.7  per 
thousand — chiefly  through  public  health  measures  and  the  reduction  of 
mortality  from  communicable  disease). 

In  1900  the  death  rate  in  the  registration  area  was  17.6,  in  1919  it  was 
12.9 — a  gain  of  four  lives  per  thousand  living.  A  further  gain  of  four 
lives  would  bring  our  death  rate  somewhat  below  that  of  New  Zealand 
and  Australia  and  less  than  one-half  that  of  Spain.  These  wide  differ- 
ences in  death  rates  of  various  countries,  even  when  corrected  for  age 
distribution,  evidence  the  non-fixity  of  the  life  cycle,  and  the  opportunity 
that  exists  not  only  for  extending  it  but  adding  to  human  power  and 
capacity  for  living  and  for  enjoying  life. 


II.  HEALTH  CONDITIONS  IN  INDUSTRY 

The  general  death  rate  among  those  employed  at  ages  15  to  65,  as 
estimated  on  the  basis  of  the  industrial  insurance  mortality  experience 
for  the  year  1920,  was  11.46  per  1,000  living.  An  estimate  of  42,000,000 
persons  gainfully  employed  in  1920  is  considered  conservative.3  The 
application  of  this  death  rate  to  such  a  group  would  give  a  total  loss 
for  the  year  1920  of  483,000  lives  and  a  probable  loss  in  the  year  1921  of 
500,000  lives.  As  showing  possible  margin  of  improvement,  this  death 
rate  of  11.46  per  1,000  living  in  industry  may  be  contrasted  with  that 
in  the  preferred  occupations,  such  as  teachers  and  graduates  of  women's 
colleges. 

An  investigation  of  mortality  among  the  graduates  of  Smith  College, 
Wellesley  and  Vassar,  showed  a  death  rate  of  only  3.244  or  approxi- 
mately one-third  of  the  death  rate  for  industry. 

1  Lengthening  Life  through  Insurance  Health  Work:  A  Study  of  the  Trends  of 
Mortality  Among  Policyholders  in  the  Metropolitan  Life  Insurance  Company  and  in 
United  States  Registration  Area,  1911  to  1919.  Metropolitan  Life  Insurance  Com- 
pany, New  York,  1921.  Pamphlet. 

8  Dublin,  Louis  I.  and  Jessamine  Whitney.  On  the  Cost  of  Tuberculosis.  Ameri- 
can Statistical  Association  Quarterly,  December,  1920,  v.  17,  pp.  441-450. 

1  Dublin,  Louis  I.  Personal  communication  from  Dr.  Dublin,  Statistician,  Metro- 
politan Life  Insurance  Company,  to  Dr.  Fisk,  1921. 

'Hulst,  Myra  M.  Mortality  Rates  of  College  Women,  American  Statistical 
Association  Quarterly.  March,  1921,  pp.  602-604. 


HEALTH  OF  INDUSTRIAL  WORKERS 


359 


From  industrial  insurance  records  we  find  the  principal  diseases  in 
the  order  of  frequency  with  which  they  figure  in  death  claims.1  These 
individuals,  although  generally  drawn  from  the  industrial  working  popu- 
lation, were  to  some  extent  a  selected  class  with  a  somewhat  lower 
mortality  than  in  the  general  working  population  and  this  must  be  given  due 
allowance. 


Causes  of  Death 


Year  1920 

Total— all  causes 968.4 

Tuberculosis 135.0 

Organic  diseases  of  the  heart 114 . 6 

Pneumonia  (all  forms) 103.9 

Brigtft's  disease 69.4 

Cancer 68.3 

Cerebral  hemorrhage 60 . 1 

Influenza 52.3 

Puerperal  state 22 . 5 

Diphtheria 21.6 

Respiratory  diseases  (other  than  those  listed) ...  17 . 8 

Diarrhea  and  enteritis 15.5 

Measles 8.3 

Typhoid  fever 6.5 

Whooping  cough 65 

Suicides 6.0 

Scarlet  fever 5.9 

Homicides 5.7 

Meningitis  (all  forms) 5.1 

Other  external  causes  (excluding  suicides  and 

homicides) 58  1 

Traumatism  by  automobile 10 . 9 

All  other  causes...  185.3 


Rate  per 

100,000  lives 

exposed 


Deaths  from  organic  diseases  of  the  heart,  blood  vessels  and  kidney 
exceed  the  death  rate  from  tuberculosis.  This  class  of  diseases  is  chiefly 
due  to  infection  of  various  types,  epidemic  infections  being  mainly  respon- 
sible in  the  earlier  years  of  life,  but  later  focal  infections. 

Sydenstricker  and  Brundage  report  a  sickness  rate  in  a  large  rubber 
company  employing  18,000  people,  of  9.3  working  days  for  males  and 
13.8  days  for  females.2 

1  Metropolitan  Life  Insurance  Company.    Statistical  Bulletin,  March,  1921,  v.  II, 
No.  3,  p.  11. 

2  Sydenstricker,  Edgar  and  Dean  K.  Brundage.     Industrial  Establishments  Dis- 
ability Records  as  a  Source  of  Morbidity  Statistics.    American  Statistical  Association 
Quarterly,  March,  1921.  p.  584. 


360 


WASTE  IN  INDUSTRY 


Compare  this  with  the  sickness  surveys  of  the  Metropolitan  Life 
Insurance  Company.1 

NUMBER  OF  PERSONS  SICK  AND  UNABLE  TO  WORK,  AND  RATES  PER  100.000  EXPOSED 


Disease  or  condition 


ALL  SURVEYS 
(571,757  PERSONS) 


No.  of  cases 


Rates 

per  100,000 
exposed 


All  diseases  and  conditions 10,828 

Typhoid  fever 72 

Malaria 67 

Smallpox 4 

Measles 232 

Scarlet  fever 44 

Whooping  cough 211 

Diphtheria  and  croup 56 

Influenza 769 

Pellagra 24 

Tuberculosis  of  the  lungs  424 

Other  forms  of  tuberculosis 73 

Cancer — all  forms .  .    . . ., 86 

Rheumatism 940 

Cerebral  hemorrhage,  apoplexy,  paralysis 376 

Mental  alienation  (insanity) 141 

Other  diseases  of  the  nervous  system 836 

Diseases  of  the  eyes  and  ears 191 

Organic  diseases  of  the  heart 358 

Other  diseases  of  the  circulatory  system 103 

Colds,  coryza  and  rhinitis 290 

Pneumonia — all  forms 493 

Other  diseases  of  the  respiratory  system 665 

Tonsilitis  and  other  diseases  of  the  pharynx 173 

Diseases  of  the  stomach  (cancer  excepted) 387 

Appendicitis 215 

Other  diseases  of  the  digestive  system 345 

Diseases  of  the  kidneys  and  annexa 219 

Other  diseases  of  the  genito-urinary  system 152 

Pregnancy 7 

Normal  childbirth 270 

Other  puerperal  diseases  and  conditions 18 

External  violence 1,020 

All  other  diseases  and  conditions 1,567 


1,893.8 

12.6 

11.7 

.7 

40.6 

7.7 

36.9 

9.8 

134.5 

4.2 

74.6 

12.8 

15.0 

164.4 
65.8 
24.5 

146.1 
33.3 
62.6 
18.0 
50.7 
86.2 

116.2 

30.2 

67.7 

37.8 

60.3 

38.3 

26.6 

1.2 

47.2 

3.1 

178.4 

274.0 


^tecker,  Margaret  Loomis.  Some  Recent  Morbidity  Data,  A  Summary  of 
7  Community  Sickness  Surveys — Metropolitan  Life  Insurance  Company,  1915-1917. 
New  York,  Metropolitan  Life  Insurance  Company,  1919,  p.  14. 


HEALTH  OF  INDUSTRIAL  WORKERS 


361 


It  is  notable  that  rheumatism,  a  vague  term  it  is  true,  is  the  outstanding 
complaint.  This  type  of  trouble  is  frequently  associated  with  focal  infec- 
tion and  the  organic  diseases  which  loom  so  largely  in  the  death  record 
on  industrial  lives. 

EXPERIENCE  OF  THE  WORKMEN'S  SICK  AND  DEATH  BENEFIT  OF  THE  UNITED  STATES 
OF  AMERICA,  1912-1916—44,188  MEMBERS  l 


CHART  A- Average  annual  number  of  disability  days  per  member 
(all  occupations)  in  certain  age  groups 


Days 
10      15     20    25     30     35     40    45      50 

•    •  r "—^ 


CHART  B-  Average  annual  number  ofdisability  days  per  disabled 
person  (all  occupations)  in  certain  age  groups 

FIG.  3. 


We  here  note  the  influence  of  advancing  age  on  the  sick  rate  comparable 
to  that  already  observed  in  the  other  morbidity  and  mortality  tables 
although  these  were  selected  and  medically  examined.  The  average 
annual  loss  in  this  selected  group  was  close  to  that  in  other  population 
studies,  6.6  days. 

1  Emmett,  Boris.  Disability  Among  Wage  Earners,  U.  S.  Bureau  Labor  Statistics, 
Monthly  Labor  Review,  November,  1919,  V.  IX,  No.  5,  p.  27. 


362  WASTE  IN  INDUSTRY 

In  addition  to  conditions  that  actually  impair  health  and  working 
capacity,  there  are  many  that  constitute  potential  impairment. 

In  more  than  100  plants  where  physical  examinations  of  supposedly 
well  employees  were  made  by  the  Life  Extension  Institute  wholly  for  the 
purpose  of  detecting  physical  impairments  and  offering  counsel  as  to  their 
correction,  the  following  degrees  of  physical  impairment  were  found 
in  representative  groups  of  more  than  10,000  supposedly  healthy  people 
actively  engaged  at  work:1 

We  here  stress  the  following  phases  of  the  subject. 

INFECTION 

Epidemic  and  Communicable  Diseases. — Tuberculosis  is  the  most 
important  of  epidemic  and  communicable  diseases,  2  to  3  deaths  per 
1,000  occurring  annually  at  the  working  ages.  Ten  years  ago  the  rate 
was  nearly  double  that  figure.2  It  is  estimated  that  3%  of  the  industrial 
population,  or  about  1,250,000  lives  are  affected.3 

Pneumonia,  influenza  and  typhoid  fever  are  the  most  important  acute 
communicable  diseases  among  adults.  Typhoid  fills  more  than  150,000 
sick  beds  annually  and  takes  about  15,000  lives,  mostly  in  the  working 
ages.4  Influenza  and  pneumonia  in  non-epidemic  years  take  about  35,000 
lives  in  the  working  ages  and  thus  account  for  at  least  350,000  cases  of 
illness.5 

Hookworm  infection  is  present  in  a  large  industrial  area  to  the  extent  of 
at  least  5%  among  the  laboring  population.6  Intensive  studies  show  30% 
of  students  in  a  southern  university  infected.7 

1Fisk,  Eugene  Lyman.  Conservation  of  Man  Power.  Address  before  the  Trust 
Company  Section,  American  Bankers'  Association,  Twenty-third  Annual  Meeting, 
Chicago,  111.,  September  23-24,  1918.  Proceedings,  1918,  pp.  397-404. 

2  Metropolitan  Life  Insurance  Company.    Statistical  Bulletin,  March,  1921,  V.  II, 
No.  3,  pp.  1-4. 

3  Love,  Albert  G.  and  Charles  B.  Davenport.     Defects  Found  in  Drafted  Men — 
Statistical  Information  compiled  from  the  Draft  Records  showing  the  Physical  Condi- 
tion of  the  Men  Registered  and  Examined  in  Pursuance  of  the  Requirements  of  the 
Selected-Service  Act.    Under  Direction  of  Surgeon-General  M.  W.  Ireland,  U.  S.  War 
Department.     Washington,  Government  Printing  Office,  1920,  p.  30. 

4  Gay,  Frederick  P.      Typhoid  Fever,  Considered  as  a  Problem  of  Scientific  Medi- 
cine.   New  York,  Macmillan  Company,  1918,  p.  14. 

6U.  S.  Bureau  of  the  Census.  Mortality  Statistics,  1918,  Washington,  Govern- 
ment Printing  Office,  1920,  pp.  30-34. 

"Brownlee,  C.  H.  Price  paid  by  the  South  to  the  Hookworm  Disease.  Address 
before  the  Southern  Sociological  Congress,  Houston,  Tex.,  May  8-10,  1915.  Proceed- 
ings, 1915,  pp.  50-54. 

7  Dowling,  Oscar.  Sociological  Aspect  of  Hookworm  Disease.  American  Journal 
of  Public  Health,  July,  1920,  pp.  595-598. 


HEALTH  OF  INDUSTRIAL  WORKERS  363 

Malaria  is  so  seldom  a  direct  cause  of  death,  causing  only  2,500  cases 
annually  in  the  registration  area,  that  it  is  difficult  to  estimate  its  extent 
and  influence.  It  is  responsible  for  much  sub-standard  health  and 
probably  affects  1,500,000  people  annually,  covering  27,000,000  days' 
absence.1 

The  epidemic  diseases  of  childhood  are  also  reflected  in  chronic  organic 
diseases  among  adults. 

Focal  Infection. — This  type  of  infection  arises  chiefly  in  the  head 
cavities,  such  as  the  tonsils,  tooth  sockets,  middle  ear,  and  accessory 
nasal  sinuses,  but  may  arise  elsewhere  as  in  the  gall-bladder,  appendix 
and  seminal  vesicles.  It  has  been  identified  as  a  possible  causative 
factor  in  the  following  conditions:  2 

1.  Neurasthenia  17.  Arteriosclerosis 

2.  Neuritis;  reflex  or  remote  result  18.  Meningitis 

3.  Neuralgia  19.  Pleuritis 

4.  Myalgia  20.  Bronchitis 

5.  Myositis  21.  Asthma 

6.  Arthritis,  acute,  sub-acute  or  chronic         22.  Pneumonia 

7.  Oseitis  23.  Nephritis 

8.  Periostitis  24.  Pyelitis 

9.  Gout  25.  Cystitis 

10.  Basedow's  disease  26.  Gastric  neurosis 

11.  Furunculosis  27.  Peptic  ulcer 

12.  Sepsis  28.  Appendicitis 

13.  Endocarditis  29.  Colitis 

14.  Pericarditis  30.  Cholecystitis 

15.  Myocarditis  31.  Herpes  zoster 

16.  Chorea  32.  Many  chronic  skin  diseases 

More  than  60%  of  workers  show  definite  focal  infection  of  some  degree. 
This  has  been  confirmed  by  X-ray  examinations  of  more  than  5,000  people 
by  the  Life  Extension  Institute. 

There  are  more  than  130,000  deaths  annually  in  the  working  age 
(20-60)  from  the  organic  conditions  largely  due  to  focal  infection  and 

1  U.  S.  Bureau  of  the  Census.       Mortality  Statistics,  1919.   Washington,  Govern- 
ment Printing  Office,  1921,  p.  9. 

2  Billings,  Frank.    Focal  Infection,  New  York  and  London.    Appleton,  1916. 
King,  James    Joseph.    Focal    Infections  of  the  Head  as  Sources    of  Systemic 

Diseases.  Address  before  the  Joint  Session  of  the  American  Academy  of  Ophthalmology 
and  Otolaryngology,  24th  Annual  Meeting,  Cleveland,  October  17,  1919.  New  York, 
William  Wood  &  Co.,  pp.  1-10. 

Mayo,  C.  H.  Mouth  Infection  as  a  Source  of  Systemic  Disease.  Journal  of  the 
American  Medical  Association,  December  5,  1914,  p.  2,025. 

Potter,  N.  B.  The  Vicious  Circle  in  Oral  Sepsis.  New  York  Medical  Journal, 
February  10,  1917,  p.  243. 

Rosenow,  E.G.  Mouth  Infection  as  a  Source  of  Systemic  Disease .  Journal  of  the 
American  Medical  Association,  December  5,  1914,  p.  2,026- 


364  WASTE  IN  INDUSTRY 

there  are  not  less  than  14,000,000  people  in  industry  showing  signs  of 
organic  impairment  in  some  degree.1 

Venereal  Infection. — It  is,  of  course,  impossible  to  give  definite  figures 
for  the  prevalence  of  venereal  infection.  Drawing  conclusions  from  the 
draft  figures,  5.6%  would  be  an  outside  estimate  for  ages  21  to  31  in  the 
general  mixed  population,  white  and  colored,  for  all  venereal  infections.2 
It  has  been  estimated  that  about  60%  of  the  infection  occurs  in  this  age 
period.3  It  may  be  roughly  estimated  that  1,500,000  workers  are 
affected  with  venereal  infection.  The  Life  Extension  Institute  found 
less  than  1%  of  syphilis  in  industry  and  about  3%  in  a  mixed  population.4 
The  Mayo  Clinic  found  4.6%  of  syphilis  in  mixed  classes  and  10%  among 
railwav  men.5 


PSYCHIC  AND  PHYSICAL  TRAUMA 

Fatigue. — Fatigue  may  arise  in: 

1.  The  central  nervous  system. 

2.  The  muscular  system. 

3.  In  both  combined. 

Fatigue  may  be  subjective  as  experienced  by  the  worker  or  objective 
as  noted  in  his  actions  and  output.  In  industry  fatigue  arises  chiefly  in 
the  central  nervous  system.6 

Unfortunately  in  most  discussions  of  industrial  fatigue  a  falling  work 
curve  or  diminished  output  among  employees  who  have  not  reported  ill 
is  accepted  as  a  complete  uncomplicated  reflection  of  fatigue.  This 
sweeping  assumption  is  wholly  unjustified. 

From  a  thorough  consideration  of  the  literature  it  is  quite  evident 
that  a  vast  amount  of  emphasis  has  been  laid  upon  the  mechanical  or 
extrinsic  factors  influencing  the  working  capacity  while  the  multiplicity 

1  Fisk,  Eugene  Lyman.      Addresses,  Annual  Banquet  Life  Extension  Institute,  New 
York,  December  3,  1919.     Reprint,  Life  Extension  Institute,  pp.  14-17. 

2  Davenport,  C.  B.  and  Albert  G.  Love.      Defects  found  in  Drafted  Men.    The 
Scientific  Monthly,  January,  1920,  p.  13. 

8  King,  Mary  L.  and  Edgar  Sydenstricker.  Venereal  Disease,  Incidence  and  Dif- 
ferent Ages,  Tabulation  of  8,413  cases.  Case  Report  for  Indiana.  U.  S.  Public 
Health  Service  Report,  December  24,  1920. 

*  Fisk,    Eugene   Lyman.      Address,    Annual   Banquet   Life   Extension    Institute, 
New  York,  December  3,  1919.    Reprint,  Life  Extension  Institute,  pp.  17-18. 

*  Stokes,  J.  H.  and  Helen  E.  Brehmer.      Syphilis  in  Railroad  Employees.     Journal 
Industrial  Hygiene,  January,  1920,  pp.  419-427. 

'  Hayhurst,  Emery  R.  Points  in  the  Detection  of  Industrial  Fatigue  and  Measures 
for  its  Possible  Complete  Elimination.  Journal  of  Industrial  Hygiene,  November, 
1920,  pp.  256-258. 


HEALTH  OF  INDUSTRIAL  WORKERS  365 

of  original  physical  and  mental  states  that  may  limit  the  working  capacity 
have  been  almost  wholly  neglected.1 

Emphasis  has  been  laid  on  fatigue  toxins  although  it  is  doubtful  whether 
any  specific  fatigue  toxin  exists  or  whether  metabolites  in  the  blood 
resulting  from  muscular  work  can  really  cause  fatigue  in  ordinary  fac- 
tory labor  except  under  conditionsof  unusually  prolonged,  severe  or 
violent  muscular  work.  In  fact,  skilled  labor  is  much  more  liable  to 
cause  fatigue  because  of  the  demand  it  makes  on  the  central  nervous 
system. 


1  Lee,  Frederic  S.      The  Human  Machine  and  Industrial  Efficiency,  New  York, 
Longmans,  Green  &  Co.,  1918. 

Effects  of  Temperature  and  Humidity  on  Fatigue.    Address  before  Section  4 

International  Congress  on  Hygiene  and  Demography.     Washington.     Transactions, 
1912,  v.  3.  pp.  504-512. 

—  Is  the  Eight-Hour  Day  Rational?    Science,  November  24,  1916,  pp.  727-735. 

Goldmark,  Josephine.  Fatigue  and  Efficiency.  New  York.  Russell  Sage 
Foundation,  1912. 

and  Mary  D.  Hopkins,  Philip  Sargent  Florence,  Frederic  S.  Lee.  Compari- 
son of  an  Eight-Hour  Plant  and  a  Ten-Hour  Plant.  Public  Health  Bulletin  No.  106. 
Washington,  Government  Printing  Office,  1920. 

Frankfurter,  Felix  and  Josephine  Goldmark.  The  Case  for  the  Shorter  Working 
Day.  Franklin  O.  Bunting,  plaintiff  in  error,  vs.  The  State  of  Oregon,  defendant  in 
error.  Brief  for  defendant  in  error.  Supreme  Court  of  the  United  States,  October 
term,  1915.  Reprint.  New  York,  National  Consumer's  League,  1915,  v.  I  and  II. 

Great  Britain — Ministry  of  Munitions.  Health  of  Munition  Workers'  Committee 
Interim  Reports.  Industrial  Efficiency  and  Fatigue.  London.  His  Majesty's 
Stationery  Office,  1915-1916-1917  and  1918. 

Florence,  Philip  Sargent.  Use  of  Factory  Statistics  in  the  Investigation  of  Indus- 
trial Fatigue.  Studies  in  History,  Economics  and  Public  Law.  New  York.  Columbia 
University,  v.  LXXXI,  No.  3,  1918. 

National  Industrial  Conference  Board.  Analysis  of  British  Wartime  reports  on 
hours  of  work  as  related  to  output  and  fatigue.  Boston,  National  Industrial  Confer- 
ence Board,  1917.  Research  report  No.  2. 

Hours  of  work  as  related  to  output  and  health  of  workers.  Cotton  manu- 
facturing. Boston,  March,  1918.  Report  No.  4. 

Hours  of  work  as  related  to  output  and  health  of  workers.    Boot  and  shoe 

industry.    Boston,  1918.    Report  No.  7. 

Hours  of  work  as  related  to  output  and  health  of  workers.  Wool  manu- 
facturing. Boston,  1918.  Report  No.  12. 

Rest  periods  for  Industrial  Workers.    Boston,  1919.    Report  No.  13. 

Hours  of  work  as  related  to  output  and  health  of  workers.  Silk  manu- 
facturing. Boston,  1919.  Report  No.  16. 

Unwarranted  conclusions  Regarding  the  Eight-Hour  and  Ten-Hour  Work 

Day.    A  Critical  Review  of  U.  S.  Public  Health  Bulletin  No.  106.    Boston,  1920. 
Special  Report  No.  14. 

Drinker,  C.  K.  An  Abstract  and  Criticism  of  a  comparison  of  an  Eight-Hour 
Plant  and  a  Ten-Hour  Plant.  Journal  of  Industrial  Hygiene,  October,  1920,  pp.  109- 
115. 


366 


WASTE  IN  INDUSTRY 


Bainbridge  reviews  the  evidence  and  says:1 

"  There  appears,  therefore,  to  be  no  secure  foundation  for  the  belief 
that  products  of  muscular  activity  take  any  share  in  bringing  about  fatigue 
of  the  nervous  system  ....  The  conclusion  that  fatigue  as  ob- 
served among  industrial  workers  is  essentially  of  nervous  origin  is  of 
considerable  practical  value." 

After  discussing  various  factors  apart  from  work  such  as  fear,  emotion, 
anxiety,  worries  and  the  preventives  of  fatigue,  financial  gain,  emulation 
and  other  stimulating  influences,  he  mentions  the  general  health  as 
reacting  on  working  power  but  does  not  develop  this  phase  of  the  question. 
He  lists  the  following  table  from  Vernon: 

27  MEN  SIZING  FUSE  BODIES  (HEAVY  LABOR) 


Average  Hours 

Average 

Output  per  Week. 

of  Work 

(relative) 

Hours  X  Output 

per  Week 

Output  per  Hour 

per  Hour 

(1)  Period  of  6  weeks.... 

61.5 

100 

6150 

(2)       "      "6     "     .... 

51.1 

109 

5570 

(3)       "      "8     "     .... 

55.4 

122 

6759 

(4)       "      "3     "     .... 

56.2 

124 

6969 

He  comments  as  follows : 

"  The  results  shown  in  this  table  point  to  the  conclusion  that,  at  least  in  this 
particular  occupation  the  maximal  working  week,  consistent  with  the  avoidance  of 
cumulative  fatigue,  is  fifty-six  hours.  For  lighter  forms  of  work,  Vernon  found 
that  longer  hours  could  be  worked  without  loss,  or  even  withi  mprovement,  of  out- 
put. It  is  evident,  therefore,  that  the  establishment  of  a  uniform  length  of  working 
day  for  all  classes  of  manual  workers  would  lead  in  many  cases  to  inefficiency." 

While  in  an  immediate  sense  these  conclusions  are  justified  the  workers 
themselves  must  be  studied  as  to  all  the  factors,  apart  from  work,  that 
have  influenced  their  output.  We  have  little  hesitation  in  saying  that 
the  most  important  factors  relate  to  the  original  fundamental  condition 
of  physical  and  mental  health  of  the  workers  before  the  tests  were  applied. 
Cumulative  fatigue  is  stressed  by  most  writers  but  the  obvious  influence 
of  impaired  health  in  determining  as  cumulative  fatigue,  what  would 
otherwise  be  physiological  and  rhythmic,  is  ignored;  that  is,  infection  may 

1  Bainbridge,  F.  A.  Physiology  of  Muscular  Exercise.  London,  Longmans, 
Green  &  Co.,  1919,  pp.  180-183. 

Vernon,  H.  M.  Output  in  Relation  to  Hours  of  work.  Interim  Report,  London. 
His  Majesty's  Stationery  Office,  1917,  pp.  17-25. 


HEALTH  OF  INDUSTRIAL  WORKERS  367 

so  depress  an  individual  as  to  prevent  him  from  rallying  from  ordinary 
physiological  fatigue  and  thus  carry  him  over  into  cumulative  fatigue. 

Gilbreth,1  presenting  the  mechanical  viewpoint,  states  that  in  a  fatigue 
survey  the  most  important  data  are  those  which  have  to  do  with  lighting, 
glare  and  reflection,  alternate  sitting  and  standing,  dark  colored  walls, 
types  of  chairs  used  and  similar  influences.  To  such  influences  he  ven- 
tures to  ascribe  a  loss  in  productivity  of  20c.  per  worker  for  each  and  every 
working  day.  This  would  mean  a  loss  of  $60  per  annum  for  each  worker 
or  about  $2,500,000,000  per  annum  for  the  entire  working  population. 
Further  proof  is  required  to  support  such  figures,  but  if  50%  of  such 
saving  from  the  correction  of  mechanical  environment  defects  is  possible, 
what  value  shall  we  attach  to  a  critical  physical  examination  that  reveals 
more  than  50%  of  the  working  people  with  defective  vision  requiring 
correction?  2  How  much  fatigue  can  we  prevent  by  such  correction  as 
compared  to  the  comparatively  trivial  influence  of  environmental 
factors? 

We  would  say  that  in  a  survey  of  fatigue  it  is  first  necessary  to  inquire: 

Does  the  output  fall  because  the  worker  is  tired  or  because  he  is 
physically  deficient? 

Is  the  worker  ill  because  he  is  tired  or  tired  because  he  is  ill? 

Inasmuch  as  physical  examinations  have  shown  that  more  than  50% 
of  any  group  of  industrial  workers  show  either  disease  conditions  or  sub- 
standard physical  states  that  require  medical  attention,3  this  enormous 
factor  which  has  been  practically  ignored  in  fatigue  studies  is  entitled  to 
first  instead  of  last  place.  Comparisons  of  the  productivity  of  6,  8  and 
10  hour  plants  do  not  give  real  testimony  as  to  the  optimal  working 
day  in  any  industry  unless  we  know  how  many  in  the  group  are  affected 
by  preventable  or  curable  conditions,  such  as: 

Infected  teeth,  infected  tonsils,  constipation,  faulty  diet  and  mental 
poison  such  as  home  worries,  suppressed  or  thwarted  emotions  or  aspira- 
tions, conditions  which  may  well  have,  and  probably  do  have  far  more 
influence  on  working  capacity  than  mechanical  environmental  influences — 
even  hard  work  and  long  hours — unless  carried  to  irrational  extreme. 

No  one  can  question  the  desirability  of  avoiding  a  working  day  of 
such  length  that  it  excludes  opportunity  for  proper  relaxation  and  rest. 

But  it  is  more  important  that  we  rear  a  strong  and  virile  race,  capable 

1  Gilbreth,  Frank  B.  and  Lillian  M.      Unnecessary  Fatigue  a  Multibillion  Enemy 
to  America.    Journal  Industrial  Hygiene.     March,  1920,  pp.  542-545. 

2  Fisk,  Eugene  Lyman.      Addresses,  Annual  Banquet,  Life  Extension  Institute, 
New  York,  December  3,  1919.     Reprint,  Life  Extention  Institute,  p.  18. 

3  Fisk,  Eugene  Lyman.      Conservation  of  Man-Power.     Address  before  the  Trust 
Company  Section,   American   Bankers'   Association,   Twenty-third  Annual  Meeting, 
Chicago,  111.,  September  23-24,  1918.     Proceedings,  1918,  pp.  397-404. 


368  WASTE  IN  INDUSTRY 

of  working  beyond  the  average  requirement  rather  than  to  adjust  the 
environment  and  working  requirement  so  that  they  shall  conform  to  the 
necessities  of  a  working  population  physically  below  par  and  encouraged 
by  such  measures  to  remain  below  par. 

There  is  also  need  to  combat  the  notion  that  work  in  itself  is  a  curse 
and  that  the  lighter  the  work  the  happier  the  nation. 

Sir  James  Paget  said  i1  "  You  will  find  fatigue  has  a  larger  share  in  the 
transmission  of  disease  than  any  other  single  cause  that  you  can  name." 
The  proposition  may  well  be  reversed.  If  a  man  is  neither  infected  nor 
poisoned  nor  lowered  in  his  resistance  by  faulty  personal  hygiene,  it  is 
questionable  whether  in  an  ordinary  working  day  fatigue  can  really 
do  anything  but  make  rest  a  welcome  luxury. 

Prof.  F.  S.  Lee,2  in  answering  a  query  as  to  the  possible  influence  of 
sub-standard  health  conditions  in  the  causation  of  fatigue  and  the  sepa- 
ration of  this  influence  from  other  factors  and  its  evaluation,  put  the  matter 
squarely  when  he  said  "  this  is  a  great  gap  in  these  investigations  yet  to 
be  filled." 

Occupational  Poisons  and  Disease. — At  the  Massachusetts  General 
Hospital,  only  9%  of  industrial  workers  treated  suffered  from  conditions 
directly  relative  to  the  industry  in  which  they  were  engaged.3  This  is  an 
important  cause  of  waste  but  cannot  be  treated  in  detail  in  this  digest. 

Economic  Loss  From  111  Health  in  Industry. — The  value  of  an  indus- 
trial life  at  age  31,  the  probable  average  age  in  industry,  may  conserva- 
tively be  estimated  as  $8,000,  using  Farr's  method  and  allowing  for 
present  wage  scale.4  (The  figure  $5,000  used  elsewhere  in  the  report,  is 
the  factor  for  the  whole  population  regardless  of  age.  The  value  varies 
with  the  age.) 

Since  we  have  found  that  there  is  an  experiential  basis  for  predicting 
a  saving  of  4  lives  per  1,000  living  per  annum  by  the  periodic  physical 
examination  and  instruction  of  adults,  we  may  present  the  following 
statement  as  exhibiting  the  saving  from  this  method  even  apart  from  the 
organization  of  co-operative  curative  agencies:5 

1  Lee,  F.  S.      The  Human  Machine.     London.     Longmans,  Green  &  Co.,  1918 
p.  79. 

2  Industrial  Fatigue.      Annual  Meeting  American  Public  Health  Association,  New 
Orleans,  October  27-30,  1919. 

3  Wright,  Wade.      An  Industrial  Clinic.     U.  S.  Bureau  of  Labor  Statistics  Monthly 
Labor  Review.     December,  1917,  v.  5,  pp.  185-193. 

4  Fisher,  Irving.      Report  on  National  Vitality  Bulletin  No.  30.     Committee  of 
One  Hundred  on  National  Health.     Washington,  Government  Printing  Office,  1909, 
p.  118. 

6  Jackson,  C.  W.  The  Influence  of  Medical  Examination  of  Insured  Lives:  Health 
Conservation.  Paper  read  before  the  Actuarial  Society  of  America,  Boston,  Mass. 
October  16,  1913.  Transactions,  pp.  321-325. 

Fisk,  Eugene  Lyman.     The   Possible  Functions   of  the  Life  Insurance   Company 


HEALTH  OF  INDUSTRIAL  WORKERS  369 

Saving  of  4  lives  per  1,000  among  42,000,000  industrial  workers 168,000  lives 

168,000  X $8,000  (economic  value  of  adult  life) $1,344,000,000 

Saving  2,920  days'  illness  per  1000  equals  122,640,000  daysX$3  (medi- 
cal, nursing  and  other  sickness  costs) 367,920,000 


$1,711,920,000 
Estimated  cost  of  medical  supervision  :   in  industry  at  $5  per  capita. . .        210,000,000 


$1,501,920,000 

Cost  of  curative  work  (repair  work,  surgery,  dental  work  and  other 
curative  measures  cannot  be  closely  figured  but  if  intelligently 
organized  it  need  not  exceed  $500,000,000) 500,000,000 

Net  waste  due  to  neglect  to  health  supervision  in  industry  (in  round 

numbers) $1,000,000,000 

ECONOMIC  Loss  FROM  ACCIDENTAL  INJURY 

Crum  has  estimated  the  total  economic  annual  loss  from  public  acci- 
dents in  the  general  population  as $2,229,156,000 

based  on  the  value  of  human  life  at  various  ages  and  the  accident 
fatalities  at  those  ages.  This  takes  into  account  45,000  fatal  acci- 
dents in  1917  and  an  estimate  of  5,625,000  non-fatal  injuries  by 
public  accidents.2 

It  has  been  estimated  by  the  United  States  Department  of  Labor  3 
that  875,000  people  are  annually  disabled  4  weeks  or  more  by 
industrial  accidents.  If  we  assume  that  the  cost  of  turn  over  or 
replacement  of  these  people  is  $35, 4  that  would  mean  a  direct 

waste  in  turnover  alone  of  875,000 X$35 $30,625,000 

Add  for  those  killed  (28,000 X$35) 980,000 


Increased  production  cost  due  to  industrial  accidents $31,605,000 

At  least  75%  of  the  accident  rate  is  preventable.5      Even  greater 

in  the  Conservation  of  Health.  Address  before  the  Section  on  Social  and  Economic 
Science,  American  Association  for  the  Advancement  of  Science,  Cleveland,  January  3, 
1913.  Reprint.  Postal  Life  Insurance  Company,  New  York. 

1  Drinker,  C.  K.  and  K.  R.      The  Economic  Aspects  of  Industrial  Medicine.    Journal 
of  Industrial  Hygiene,  June,  1920,  p.  60. 

2  Crum,  Frederick  S.      Public  Accidents  and  their  Cost.     Eighth  Annual  Safety 
Congress,  1919.     Proceedings  of  the  National  Safety  Council,  pp.  1061-1064. 

J  Mock,  Harry  E.      Reclamation  of  the  Physically  Handicapped.     Journal  Ameri- 
can Medical  Association,  November  20,  1920,  v.  75,  No.  21,  p.  1406. 

Industrial  Medicine  and  Surgery.     Philadelphia  and  London,  W.  B.  Sanders  Co., 
1919,  p.  789. 

4  Drinker,  C.K.  and  K.  R.      The  Economic  Aspects  of  Industrial  Medicine.    Journal 
Industrial  Hygiene,  June,  1920,  p.  63. 

6  Bach,   E.  E.      Labor  Turnover  and  Its  Relation  to   Mine  Accidents.    Eighth 
Annual  Safety  Congress,  1919.     Proceedings  of  the  National  Safety  Council,  p.  849. 

Price,  C.  W.     (National  Safety  Council.)     Some  Outstanding  Facts  in  the  Safety 
Movement.    American  Labor  Legislation  Review,  March,  1920,  v.  X,  No.  1,  pp.  25-26. 
Williams,  Sidney  J.     Communication  to  the  Federated  American  Engineering 
Societies,  May,  1921. 


370  WASTE  IN  INDUSTRY 

reduction  has  been  made  in  some  plants  by  safety  measures  and 
education.  The  economic  value  of  these  lives  on  the  lowest  basis 
of  computation  is  $8,000  each  and  the  saving  of  20,000  of  them 

(75%)  would  mean  an  economic  gain  in  industry  of $160,000,000 

If  we  apply  this  rate  to  the  general  population  on  the  basis  figured  by 

Cram,  it  would  mean  a  saving  of $1,671,867,000 

Special  Items  of  Loss 

Tuberculosis:  $500,000,000   annually    from    death    alone; l   $26,000,000,000   in   this 

generation  from  diminished  longevity. 
Typhoid:         $135,000,000  annually.2 
Hookworm:     Dowling  3   estimates  loss  from  hookworm  at  least  $250,000,000  annually: 

33%  increase  in  industrial    efficiency  has  resulted  from    hookworm  4 

prevention  in  certain  sections. 
Malaria:          $100,000,000  annually.6     • 

These  are  all  theoretically  wholly  preventable — at  least  75%  practically 
preventable. 

To  remedy  the  unfavorable  health  conditions  discussed  in  this  report, 
there  is  need  to  develop  among  the  people  at  large  a  higher  sense  of 
responsibility  for  the  care  of  their  bodies;  in  other  words,  higher  ideals 
of  personal  hygiene,  as  well  as  in  citizenship  generally.  In  order  practically 
to  apply  these  ideals,  organization  and  certain  governmental  and  social 
machinery  is  necessary.  The  possible  lines  of  organization  may  be 
grouped  as  follows: 

Federal; 

State; 

Community; 

Industrial; 

National,  State  and  Local  Extra-Governmental  Health  Agencies 

Federal. — A  Federal  Department  of  Health,  with  a  Cabinet  Officer 
in  charge  of  it,  has  been  the  ideal  for  which  progressive  health  workers 
have  striven  for  many  years.  If  this  is  not  attainable — it  has  been 
attained  in  Great  Britain — an  alternative  is  the  concentration  of  federal 
health  activities  and  related  social  activities  in  one  department. 

1  Dublin,  Louis  I.  and  Jessamine  Whitney.      On  the  cost  of  Tuberculosis.     Ameri- 
can Statistical  Association  Quarterly,  December,  1920,  pp.  441-450. 

2  Gay,   Frederick   P.      Typhoid   Fever.     Considered  as  a   Problem   of  Scientific 
Medicine.     New  York,  Macmillan  Company,  1918,  p.  23. 

3  Dowling,  Oscar.      Sociological  Aspects  of  Hookworm  Disease.     American  Journal 
of  Medical  Sciences.     July,  1920,  pp.  595-598. 

4  Farrell,    John    A.      Hookworm    Disease,    its    Ravages,    Prevention    and    Cure. 
Columbia,  South  Carolina  Board  of  Health,  1918. 

6  Hoffman,  Frederick  L.  A  Plea  and  a  Plan  for  the  Eradication  of  Malaria  through- 
out the  Western  Hemisphere.  An  Address  read  in  Abstract  before  the  Southern 
Medical  Association,  10th  Annual  Meeting,  Atlanta,  Ga.,  November  14,  1916.  Reprint 
Newark  Prudential  Press,  1917,  pp.  46-48. 


HEALTH  OF  INDUSTRIAL  WORKERS  371 

Without  considering  in  full  the  ramifications  and  subsidiary  activities 

of  such  a  department,  we  may  list  the  following  major  functions  that 
would  come  within  its  scope: 

1.  Disease  control  6.  Laboratory 

2.  Vital  statistics  7   Health  education 

3.  Child  hygiene  8.  Medical  and  social  service. 

4.  Industrial  hygiene  9.  Housing. 

5.  General  sanitation 

State. — A  State  Board  of  Health  would  in  many  respects  follow  the 
lines  of  organization  of  the  federal  department".  Special  functions  and 
activities  may  be  emphasized  as  follows : 

1.  Divisional  health  officers  9.  Industrial  medicine  and  hygiene 

2.  Inspectors  10.  Foods 

3.  Health  centers  11.  Drugs  and  poisons 

4.  Public  health  education  12.  Personal  hygiene 

5.  Maternity  13.  Physical  training  for  boys 

6.  Child  Welfare  14.  Physical  training  for  girls 

7.  Hospitals  15.  Periodic  physical  examination 

8.  Sanatoria  16.  Housing. 

Community. — The  functions  of  a  community  Board  of  Health  under 

the  supervision  of  a  Commissioner  of  Health  or,  in  small  localities,  under 
the  supervision  of  a  full-time  Health  Officer,  may  be  suggested  as  follows: 

1.  Health  centers  11.  Personal  hygiene 

2.  Pre-natal  work  12.  Periodic    physical    examination 

3.  Infant  welfare  work  (private  and  public  facilities  for) 

4.  Pre-school  work  13.  Dental  prophylaxis 

5.  Public  health  nurse  14.  Community  house 

6.  Hospital  and  sanatorium  15.  Parks 

7.  Day  and  night  camp  16.  Playgrounds 

8.  Public  health  education  17.  Athletics 

9.  Factory  inspection  18.  Baths  and  swimming 
10.  School  inspection  19.  Housing. 

Industrial. — The  limitation  of  industrial  responsibility  for  the  health 
of  the  worker  should  be  clearly  understood.  There  are,  however,  certain 
opportunities  and  responsibilities  which,  within  these  limitations,  may 
be  grouped  as  follows: 

1.  Work  7.  Mutual  benefit  and  group  insurance 

2.  Industrial  hygiene  and  sanita-        8.  Vocational  guidance 

tion  9.  Periodic  physical  examination 

3.  Medical  supervision  10.  Physical  examinations  for  new 

4.  Industrial  nurse  employees 

5.  Personal  hygiene  11.  Dental  prophylaxis 

6.  Safety  first  and  first  aid 

Personal  Relations 

1.  Education  3.  Social  life 

2.  Church  4.  Play  and  recreation 

Family  Circle 

Man — the  primary  unit  in  industry; 
His  Family — the  secondary  and  controlling  unit. 


372 


WASTE  IN  INDUSTRY 


National,  State  and  Local  Extra-Governmental  Agencies. — There  is 
need  for  the  prevention  of  overlapping  and  duplication  of  work  in  such 
agencies.     This  need  has  been  partly  met  by  the  organization  of  the 
National  Health  Council,  comprising  the  following  organizations: 
American  Public  Health  Association; 
American  Red  Cross; 
American  Social  Hygiene  Association; 

Conference  of  State  and  Provincial  Health  Authorities  of  North  America ; 
Council  on  Health  and  Public  Instruction  of  the  American  Medical 

Association; 
National  Child  Health  Council; 

Affiliations:   American  Child  Hygiene  Association; 
Child  Health  Organization  of  America; 
National  Child  Labor  Committee. 
National  Committee  for  Mental  Hygiene; 
National  Organization  for  Public  Health  Nursing; 
National  Tuberculosis  Association; 
United  States  Public  Health  Service;   (Conference  Member). 

Private  Agencies. — Among  private  agencies,  with  enormous  resources 
for  improving  the  public  health,  we  must  number  the  life  insurance  com- 
panies. A  number  of  these  companies  are  now  doing  important  public 
health  work,  giving  to  their  policyholders  the  privilege  of  periodic  health 
examinations  either  through  the  Life  Extension  Institute  or  through 
their  own  medical  departments. 

The  National  Industrial  Conference  Board  in  its  Research  Report 
Number  37  gives  the  following  digest  of  important  medical  work  in 
industry  now  being  carried  on: 

ANNUAL  WORK  OF  INDUSTRIAL  MEDICAL  DEPARTMENTS  BY  SIZE  OF  ESTABLISHMENTS. 
207  ESTABLISHMENTS 


Size 
of 
Plant. 
Less 
Than 

No.  of 
Plants 
Report- 
ing 

No.  of 
Work- 
ers 

New 
Injuries 

New 
Injuries 
Per 
Worker 

Redress- 
ings 

Re- 
dress- 
ings 
Per 

New 

Medi- 
cal 
Cases 

Medi- 
cal 
Cases 
per 
Worker 

Physi- 
cal 
Exami- 
nations 

Injury 

1,000 

•52 

31,846 

106,776 

3.35 

119,977 

1.12 

79,578 

2.50 

13,793 

1,000- 

2,000 

54 

76,964 

114,986 

1.49 

178,900 

1.55 

211,204 

2.74 

45,692 

2,000- 

5,000 

59 

179,193 

236,978 

1.32 

439.697 

1.86 

340,887 

1.89 

97,784 

5,000- 

10,000 

23 

149,947 

211,381 

1.40 

461,529 

2.19 

194,092 

1.29 

94,795 

Over 

10,000 

19 

326,877 

364,686 

1.11 

883,559 

2.42 

247,970 

.75 

273,754 

Totals 

207 

764,827 

1,034,807 

1.35 

2,083,662 

2.01 

1,073.731 

1.40 

525,818 

HEALTH  OF  INDUSTRIAL  WORKERS  373 

A  minimum  medical  organization  and  equipment  has  been  suggested 
as  follows: 

For  a  factory  population  of  2,500 :  One  full-time  physician,  two  nurses, 

a  dental  hygienist  for  prophylactic  work  only,  clinic  and  dental  equipment. 

For  smaller  plants  a  co-operative  medical  service  can  be  utilized, 

either  through  existing  organizations  established  for  this  purpose,  or 

special  organizations  arranged  in  industrial  centers  where  they  are  needed. 

EUGENE  LYMAN  FISK. 
C.  T.  SHARPE. 


CHAPTER  XVI 

EYE  CONSERVATION 

BY  DR.  EARL  B.  FOWLER 

I.  HAZARDS 

Accident  to  Eyes — Industrial  Loss. — There  is  still  appreciable  loss  to 
industry  through  preventable  accidents  resulting  in  injury  to  the  eye. 
The  Industrial  Commission  of  Pennsylvania  reported  that  last  year 
(1920)  18  persons  lost  both  eyes  in  industrial  accidents,  the  compensation 
totaling  $63,731;  652  workmen  lost  one  eye,  the  compensation  totaling 
$826,674.! 

In  the  United  States  the  total  number  of  industrial  blind  is  approxi- 
mately 15,000,  or  13.5%  of  the  total  blind  population;  this  type  of  injury 
being  the  leading  causative  factor  of  blindness.  Some  rather  interesting 
estimates  of  the  cost  of  maintaining  these  blind  artisans  have  been 
compiled,  but  actual  economic  loss  cannot  possibly  be  estimated.  Cer- 
tainly the  personal  loss  from  blindness  is  far  greater  to  the  individual 
than  from  other  kinds  of  defect.  The  eye  was  involved  in  10.6%  of  all 
permanently  disabling  accidents.2  Very  complete  tables  indicating  the 
causes  of  accidents  to  the  eye  are  given  by  Harry  Best  in  "The  Blind."3 
Statistics  as  to  number,  severity  and  time-loss  are,  however,  quite  unsat- 
isfactory owing  to  the  irregularity  in  the  reporting  that  still  exists,  in  spite 
of  uniform  forms  recommended  and  urged,  but  are  complete  enough 
to  demonstrate  that  the  continuing  sacrifice  is  very  large. 

Effectiveness  of  Protective  Methods. — Present  protective  methods 
as  applied  in  large  plants  have  effected  a  great  reduction  in  injuries. 
The  Commonwealth  Steel  Company  of  St.  Louis,  Missouri,  reports:4 

1  Pennsylvania  Department  of  Labor  and  Industry.     Bureau  of  Workmen's  Com- 
pensation.    Report,  1920. 

2  Best,  Harry.    The  Blind:   Their  Condition  and  the  Work  Being  Done  for  Them 
in  the  United  States.     New  York.     Macmillan,  1919.     (Average  from  state  reports), 
p. 197. 

3  Ibid.,  pp.  173-209. 

4  Commonwealth    Steel    Company,  St.  Louis,   Mo.  (Works:    Granite    City,  111.) 
Letter  from  Earl  F.  Varnum,  Safety  and  Fellowship  Department,  to  Guy  A.  Henry, 
New  York  City,  February  5,  1921. 

374 


EYE  CONSERVATION  375 

"  We  started  accident  prevention  in  1912.  Part  of  our  work  is  very  hazardous 
to  the  eye  as  it  involves  the  chipping  of  steel  castings  by  means  of  pneumatic  ham- 
mers, consequently  in  this  department  there  are  a  great  many  flying  chips.  Up 
until  1912  it  was  no  unusual  thing  for  us  to  have  men  injure  their  eyes  and  even 
have  their  eyes  put  out  by  these  flying  chips.  When  we  started  our  Safety  Work 
in  1912  we  made  it  a  rule  that  every  man  in  this  department  should  be  provided 
with  goggles  and  compelled  to  wear  them,  also  in  any  other  department  in  the 
plant  where  there  was  any  chipping  or  grinding  to  be  done.  We  have  had  wonder- 
ful results  since  that  time,  not  having  an  eye  lost  in  our  shop  in  any  of  these  depart- 
ments. 

"  We  had  considerable  trouble  at  first  in  getting  the  men  to  wear  the  goggles, 
even  having  to  discharge  a  few  men  who  refused  to  do  so;  but  in  showing  the  men 
the  advantages  they  had  in  wearing  the  goggles  the  large  majority  were  glad  to  have 
them  and  wear  them.  We  have  had  hundreds  of  goggles  broken  from  flying  chips, 
and  have  had  a  good  many  cases  where  particles  of  glass  flew  into  men's  eyes,  but 
these  cases  do  not  result  in  any  serious  condition,  for  the  men  come  immediately 
to  the  dispensary  and  have  the  particles  removed. 

"  We  are  now  using  laminated  lenses  which  even  does  away  with  the  particles 
of  glass  getting  into  the  eyes,  as  the  lenses  are  made  in  two  parts  with  a  strip  of 
celluloid  between  them  making  them  non-shatterable.  We  even  go  further  than 
this  and  provide  special  lenses  in  goggles  for  men  whose  eyesight  is  not  normal. 
We  also  have  physical  examination  of  our  men,  and  when  a  man  has  only  one  eye 
or  his  eyesight  is  failing,  we  do  not  allow  him  to  work  in  these  departments  where 
there  is  danger  of  having  his  eye  put  out  by  flying  chips." 

The  National  Safety  Council  reports  as  to  the  experience  of  the 
American  Car  &  Foundry  Company,  as  follows:1 

"  Will  you  please  note  that  there  is  at  least  75%  to  80%  reduction  in  eye  acci- 
dents where  goggles  are  in  use  in  a  plant?  The  per  cent  of  reduction  would,  un- 
doubtedly, be  much  higher  if  the  men  would  wear  the  goggles  more  conscientiously. 
' '  The  American  Car  &  Foundry  Company  has  proven  that  the  use  of  goggles 
has  reduced  accidents  in  their  plant  75%.  It  is  argued  by  some  that  the  wearing 
of  goggles  in  the  event  of  accident  only  jeopardizes  sight  the  more,  on  account  of 
the  liability  of  injury  to  the  eyes  from  the  broken  glass  of  the  goggles.  As  a 
matter  of  fact,  however,  this  apparent  danger  is  without  foundation,  as  may  be 
judged  by  the  following  evidence.  There  has  not  been  a  single  case  of  injury  to 
the  eye  from  broken  glass  since  goggles  were  introduced  into  the  shops  of  the 
New  York  Central  Railroad.  The  American  Steel  Foundries  Company  collected 
94  pairs  of  goggles,  all  with  lenses  broken  from  flying  chips  of  steel  from  their  works 
during  a  period  of  three  months,  and  in  every  case  the  eyes  had  escaped  injury. 
Had  the  goggles  not  been  worn,  some  of  the  eyes  at  least  would  have  been  lost. 
In  another  large  steel  foundry  where  spectacles  had  been  worn  since  1911,  48  pairs 
of  goggles  were  collected  in  one  month  with  lenses  broken  by  flying  pieces  of  steel; 

1  National  Safety  Council,  Chicago.  Letter  from  J.  J.  Lamb,  Safety  Engineer,  to 
Wilson  Goggles,  Inc.,  Reading,  Pa.,  March  1,  1921. 


376 


WASTE  IN  INDUSTRY 


297  pairs  were  gathered  among  the  several  foundries  covering  a  period  of  six 
months.    During  this  entire  period  not  one  serious  eye  accident  occurred.'  "  1 

The  Union  Pacific  Railroad  Company  reports  on  the  use  of  goggles 
as  follows:2 

"  Our  employees  are  now  all  required  to  wear  goggles  on  eye  dangerous  work. 
Once  in  a  while  some  fellow  takes  the  chance  and  leaves  his  goggles  up  on  his  cap 
and  has  an  eye  injury  or  loses  his  sight  entirely,  but  these  cases  are  so  very  rare 
they  are  hardly  worth  mentioning.  I  believe  it  would  be  safe  to  say  we  do  not  have 
over  one-fourth  of  one  per  cent. 

"  We  occasionally  have  a  pair  of  goggles  sent  us  wherein  the  lens  is  shattered 
but  the  man's  vision  was  not  unpaired.  There  is  absolutely  no  argument  that  can 
be  put  up  against  the  universal  use  of  wearing  goggles  in  eye  dangerous  work. 

"  I  am  just  forwarding  to-day  a  photograph  of  one  of  our  car  repairers  who  was 
nailing  siding  on  box  cars,  eyes  absolutely  protected  and  unimpaired. 

"  Hoping  this  information  will  be  of  some  benefit  to  you  in  prosecuting  the 
universal  use  of  goggles  in  eye  dangerous  work,  thereby  doing  a  great  sendee  to 
humanity.  ..." 

The  Bethlehem  Steel  management  is  very  rigid  in  demanding  that 
protection  be  complete,  supplying  goggles  according  to  a  code  it  has 
formulated  and  printed.3 

Striking  reduction  in  eye  accidents  is  shown  by  the  following  table 
from  the  American  Locomotive  Company  r* 


Number 

Average 

Number  of 

(Yearly 
Average) 

Accidents 
Requiring 
Medical 

Number 
Eyes  Lost 

Number 
Full  Time 
Men  per  Year 

Injuries 
Per  1000 
Full  Time  Men 

Attention 

Employed 

per  Year 

1910-1913 

448 

10.5 

11,506 

38.9 

USE  OF  SAFETY  GOGGLES  ESTABLISHED 


1914 
1915 

86 
52 

1 
2 

5,004 
3,311 

17.2 
15.7 

1  Posey,  William  Campbell.    The  Hygiene  of  the  Eye,  p.  268. 

2  Union  Pacific  System  (The  St.    Joseph  &  Grand    Island    Railway    Company) 
Omaha.     Letter  from  H.  H.  Adams,  Assistant  to  General  Manager,  to  Wilson  Goggles, 
Inc.,  Reading,  Pa. 

3  Bethlehem  Steel  Company,  Bethlehem,  Pa.     Bureau  of  Employment,  Compensa- 
tion and  Welfare.     Goggle  Code.     (Leaflet.) 

4  National  Committee  for  the  Prevention  of  Blindness,  New  York.    Eye  Hazards 
in  Industrial  Occupations.     Publication  No.  12,  p.  113. 


EYE  CONSERVATION  377 

In  the  American  Steel  Foundries  the  proportion  has  been  reduced 
85%.' 

Basing  judgment  on  the  experiences  of  the  concerns  making  these  and 
similar  reports,  it  is  evident  that  the  continued  loss  is  at  least  partially 
preventable  and  due  to  failure  to  apply  protective  measures  rather  than 
to  any  fault  in  the  measures  themselves  as  they  have  been  developed. 

Protective  Devices — Code. — All  industrial  processes  involving  eye 
hazards  demand  protective  measures,  the  protector  either  being  applied 
to  the  machines  or  tools  or  worn  by  the  worker.  Definite  codes  have 
been  formulated  by  some  industries  stipulating  all  occupations  in  which 
goggles  must  be  worn  and  specifying  the  type  of  goggle  required  for  a 
particular  protection.  Such  codes  have  now  been  published  by  several 
of  the  states  (including  Pennsylvania)  and  by  the  Bureau  of  Standards 
at  Washington.2  The  codes  are  very  explicit  as  to  the  best-known 
designs  and  as  to  the  manner  of  testing  any  protector  in  question.  All 
concerns  are  thus  given  an  adequate  means  of  judging  what  protection 
is  necessary. 

Dangerous  Operation. — Under  the  National  Code  the  processes  or 
operations  in  which  protection  to  the  eyes  is  necessary  are  divided  into 
nine  groups  as  follows:  No  attempt  is  made,  however,  'to  indicate  their 
order  of  importance. 

1.  Objects. — Processes    in    which    protection    from    relatively    large 
flying  objects  is  required,  such  as  chipping,  calking  and  riveting. 

In  this  group,  the  danger  of  severe  damage  is  relatively  great  as  the 
penetrating  wound,  particularly  when  the  foreign  body  remains  or  carries 
with  it  infectious  material,  generally  destroys  or  greatly  impairs  the  eye, 
and  introduces  the  danger  of  inflammation  in  the  other  eye.  The 
direction  from  which  the  foreign  body  comes  is  uncertain,  as  is  the  time 
element  (compared  with  the  stream  from  an  abrasion  wheel)  and  the  danger 
from  fellow  workers  is  greater  in  this  group.  Strength  of  lens,  tendency 
of  fragments  of  glass  to  remain  in  place  and  not  fly  when  a  lens  is  broken, 
and  strength  of  side  screen,  though  making  a  goggle  heavy,  are  imperative, 
and  weight  does  not  mean  discomfort  if  adjustment  of  the  frame  is 
accurate. 

2.  Dust  and  Small  Particles. — Processes  where  protection  from  dust 
and  small  flying  particles  is  required. 

The  use  of  abrasion  wheels  gives  rise  to  a  large  number  of  relatively 
less  severe  injuries.  Lighter  goggles  are  required,  but  their  constant  use 
is  most  necessary. 

1  Ophthalmology,  1916,  v.  XII,  p.  61. 

2  United  States  Department  of  Commerce.      Bureau  of  Standards  National  Safety 
Code  for  the  Protection  of  the  Heads  and  Eyes  of  Industrial  Workers.     Handbook 
Series  No.  2,  1921. 


378  WASTE  IN  INDUSTRY 

There  is  a  steady  increase  in  the  use  of  abrasion  wheels;  usually 
those  made  of  alundum,  carborundum,  crystolon,  or  like  products.  The 
fine  particles  of  the  wheel  or  the  metal  are  thrown  at  incredibly  high  speed 
and  at  temperature  so  high  that  they  will  fuse  into  the  glass  of  a  goggle 
surface.  Damage  to  the  cornea  is  less  apt  to  be  severe,  if  prompt  careful 
treatment  is  administered,  than  from  injuries  in  Group  I,  but  the  fre- 
quency of  recurrence  often  produces  several  small  opacities  which 
definitely  impair  vision. 

Glass  plate  shields  attached  to  the  machines  are  used  in  part.  When 
a  wheel  is  used  for  short  periods  by  different  workmen,  the  shield  has 
an  advantage,  but  may  prove  unsatisfactory  because  of  rapid  clouding  from 
pitting,  grease  and  dust. 

3.  Dust  and  Wind. — Operations  where  protection  from  dust  and  wind 
is  required,  e.g.,  automobile  driving,  locomotive  driving  and  firing. 

Locomotive  engineers  and  firemen  find  great  need  for  shielding  their 
eyes  and  very  definite  discomfort  and  difficulty  in  wearing  goggles. 
Firemen  especially  are  at  a  disadvantage  since  they  must  turn  frequently 
from  the  fire  door  to  the  cab  window  for  observation.  It  is  important 
that  the  fireman  see  clearly  and  quickly  in  looking  ahead,  yet  his  goggles 
coming  suddenly  into  cooler  air  from  the  heat  of  the  fire  become  covered 
with  a  film  of  steam,  or  sweat  from  the  fireman's  own  exertion.  "  Pen- 
ciling "  the  lenses  (using  some  non-sweat  compound)  and  wearing  a 
"  sweat  band  "  across  the  forehead  is  of  some  help,  but  only  by  care  on 
the  part  of  the  railroads  in  supplying  the  proper  goggles  and  giving 
instructions  as  to  their  care  will  these  objections  gradually  be  overcome. 
Lenses  must  be  white  and  very  perfectly  surfaced,  with  lens  for  visual 
correction  when  needed. 

4.  Splashing    Metal. — Processes    where    protection    from    splashing 
metal  is  required,  e.g.,  casting. 

The  goggles  advised  for  this  use  have  been  found  to  resist  breakage 
or  penetration  to  a  remarkable  degree,  saving  many  eyes  in  moisture 
explosions  incident  to  "  pouring  "  and  similar  work.  The  frames  must 
be  highly  resistant  to  heat  and  so  designed  that  molten  metal  cannot 
get  through  the  ventilator  holes. 

5.  Gases,    Fumes    and    Liquid. — Processes    where    protection    from 
gases,  fumes  and  liquids  are  required,  e.g.,  handling  of  acids  and  caustics, 
galvanizing  tanks,  and  japanning. 

6.  Excessive  Dust  and  Small  Particles. — Processes  where  protection 
from  an  excessive  amount  of  dust  and  small  flying  particles  is  required, 
e.g.,    sand-blasting.    Very    complete    protective    apparatus    has    been 
developed  and  is  obtainable. 

7.  Reflected  Light  or  Glare. — Operations  where  protection  is  required 
from  reflected  light  or  glare,  e.g.,  sunlight  from  roofs,  road-beds,  water, 


EYE  CONSERVATION  379 

snow.     Lighter  tints  in  lenses  but  of  a  color  that  will  filter  out  ultra- 
violet heat  and  excessive  visible  rays. 

8.  Radiant  Energy — Moderate  Reduction  Required. — Processes  where 
protection  from  injurious  radiant  energy  with  a  moderate  reduction  in 
intensity  of  the  visible  radiation  is  required,  e.g.,  oxy-acetylene  welding 
and  cutting,  open-hearth,  Bessemer  furnace  work. 

9.  Radiant    Energy — Large    Reduction    Required. — Processes    where 
protection  from  injurious  radiant  energy  with  a  large  reduction  of  the 
visible  radiant  energy  is  required,  e.g.,  electric  arc  welding  and  cutting. 

Goggles — Requirements  and  Standards. — The  conclusion  has  been 
reached  that  no  commercial  illuminant  radiates,  for  any  working  inten- 
sity of  illumination,  enough  ultra-violet  energy  to  be  at  all  harmful, 
provided  one  exercises  ordinary  discretion  in  keeping  unpleasantly  bright 
visible  light  out  of  the  eyes.  Therefore,  except  for  "  trimming "  or 
testing  globes  or  similar  constant  subjection,  filtering  glasses  are  rarely 
necessary  in  ordinary  occupations.  The  glass-enclosing  globes  of  the 
lamps  are  sufficient  to  reduce  any  injurious  radiation  far  below  the  danger 
point.  Though  discomfort  may  arise  from  intense  lights  in  the  range 
of  vision,  no  permanent  damage  is  likely  to  occur.1 

In  steel  making,  furnace  work  and  welding,  both  oxy-acetylene  and 
arc,  the  use  of  colored  lenses  is  necessary.  The  ultra-violet  rays  even 
in  this  process,  though  apt  to  produce  little  more  than  a  conjunctivitis, 
can  reach  the  retina  of  an  unprotected  eye,  and  should  be  filtered  out.2 
The  infra-red  waves  are  present  in  such  sources  but  the  greater  part  of 
the  damage  done  by  them  to  the  tissues  is  due  to  their  thermic  action. 
The  protection  needed  in  welding  is  from  the  ultra-violet,  intense  light 
and  heat. 

Goggles  for  this  use  must  meet  these  filtration  requirements  and  still 
permit  sufficient  vision.  The  data  published  in  Technologic  Paper  No. 
93,  U.  S.  Bureau  of  Standards,  the  work  of  W.  W.  Coblentz  and  W.  B. 
Emerson,  include  tables  covering  practically  all  of  the  glass  used  in  goggles 
at  the  present  day  with  the  power  of  filtration  that  they  have  been 
found  to  possess.  From  this  it  is  possible  to  select  the  lens  best  suited 
for  any  one  process.  For  arc  welding  and  other  intense  sources  they 
recommend  black,  green  or  yellowish  green.  Where  more  light  must  be 
permitted  to  pass,  light  bluish  green  or  sage  green  is  advised.  The 
cobalt  blue  often  used  is  not  effective.  Most  of  the  glass  sold  under 
trade  names  has  data  readily  accessible  concerning  its  action.  "The 
Bureau  of  Standards  will  test  any  glass  submitted  to  them."3 

1  Bell.     Proceedings  of  American  Academy  Arts  and  Sciences,  v.  48,  1912,  p.  1. 

2  Coblentz,  William  W.  and  W.  B.  Emerson.      Glasses   for   Protecting  the  Eyes 
from  Injurious  Radiations.     (United  States  Bureau  of  Standards,  Technologic  Paper 
No.  93.)     1919. 

3  King,  W.  G.      Vice-president  Julius  King  Optical  Company.    Safe  Heads  and 


380  WASTE  IN  INDUSTRY 

Very  definite  and  severe  tests  are  laid  down  by  the  National  Code 
for  determining  the  resistance  of  glass  to  breakage  and  the  holding  of 
the  fragments  in  the  frame  after  breakage.  The  specifications  for  frames 
are  also  given.  Yet,  in  spite  of  this  accessible  information,  the  knowledge 
regarding  the  characteristics  of  adequate  protection  appears  to  be 
definitely  limited  to  a  few,  mainly  those  responsible  in  the  larger  organi- 
zations. The  distribution  of  such  available  information  must  be  carried 
out  as  it  is  most  important  for  smaller  groups  of  workers  to  realize  the 
necessity  for  safeguarding  their  eyes  and  to  know  the  most  certain 
means  of  accomplishing  this.  Much  of  the  distribution  will  be  the  result 
of  the  activities  of  those  commercially  interested  and  there  should  be 
some  check  on  the  advertising.  False  statements  or  the  sale  of  goggles 
under  misrepresentation  that  they  meet  all  of  the  specified  requirements 
of  the  codes,  introduces  a  grave  menace. 

Overcoming  Objections  to  Goggles. — The  matter  of  objections  to 
wearing  goggles  has  been  gone  into  many  times.  These  have  been 
largely  overcome  through  educational  campaigns  and  many  firms  have 
developed  additional  measures  for  enforcing  protection.  In  some  of  the 
states  laws  have  been  enacted  regarding  protection  but  in  most  instances 
these  are  not  sufficiently  explicit  nor  are  they  efficiently  enforced.  A 
reduction  in  compensation  as  penalty  for  failure  to  take  advantage  of  all 
protective  means  has  been  suggested.  Also  that  the  reduction  in  insur- 
ance premium  rates  that  accompanies  improved  practices  be  emphasized, 
for  the  educator  must  be  made  to  realize  that  it  is  worth  while  to  educate, 
reform  and  enforce.  There  is,  however,  much  opportunity  to  improve 
the  goggles  now  in  use  and  the  manufacturers  are  most  active  to  this  end. 
For  example,  the  range  of  vision,  with  a  glass  sufficiently  small  to  give 
the  needed  strength  for  severe  hazards  is  such  as  to  make  them  objec- 
tionable in  certain  of  the  structural  work.1  Also,  up  to  the  present  time 
there  has  been  a  reduction  in  the  strength  incident  to  the  surfacing  of  the 
glass  to  correct  for  visual  defects.  The  careful,  exact  fitting  of  the  frames  to 
facial  contour  on  which  depends  comfort  and  much  of  the  value,  is  fre- 
quently difficult  and  certainly  not  universal. 

Unavoidable  Accidents — Treatment. — A  certain  number  of  accidents 
involving  damage  to  the  eye  are  still  unavoidable.  The  presence  or 
absence  of  permanently  detrimental  results  is  very  likely  to  depend  on 
the  promptness  and  efficiency  of  the  treatment  that  is  instituted.  Pro- 
vision for  first  aid  treatment  must  be  close  and  the  men  must  be  taught 
to  report  without  making  any  attempt  to  correct  the  condition  themselves. 
In  a  number  of  the  plants  small  foreign  bodies  that  can  be  so  removed 

Good  Eyes.     (Lecture,   Safety  Fundamentals.)     Safety  Institute  of  America,   New 
York.     1920.    P.  78. 

1  Cross.    Sun  Ship  Building  Company,  Chester,  Pa. 


EYE  CONSERVATION  381 

are  wiped  off  with  a  cotton  swab  moistened  with  a  mild  antiseptic  solu- 
tion. If  anything  further  is  necessary  to  dislodge  them,  or  if  injury 
has  been  done,  a  sterile  dressing  is  applied,  and  the  worker  is  sent  to  the 
surgeon  at  once.  When  special  hazards  exist,  special  measures  should 
be  most  accessible,  for  it  is  often  the  first  few  seconds  that  count  in  the 
treatment.  For  instance,  when  acids  or  caustics  are  used  a  stream  of  water 
that  may  be  turned  into  the  eye  and  bottles  of  a  neutralizing  solution  of 
the  proper  strength  should  be  kept  within  easy  reach. 

With  the  improvement  of  motor  transportation  that  has  come  in  the 
last  few  years,  efficient  surgical  care  is  readily  accessible  in  most  locations. 
Definite  relations  should  be  established  with  the  surgeon  to  whom  cases 
are  to  be  sent  and  a  program  for  first  aids  should  be  laid  down  by  him 
to  meet  the  individual  requirement.  Emphasis  should  be  put  on  the 
importance  of  X-ray  in  all  cases  where  there  is  even  a  remote  possibility 
of  the  presence  of  an  intra-ocular  foreign  body. 


II.  VISION 

Correction  of  Sub-Standard  Vision — Favorable  Opinion. — That  cor- 
rection of  sub-standard  vision  produces  an  increase  in  return  that  will 
pay  for  its  cost — though  no  set  of  figures  at  hand  will  place  this  return 
on  a  dependable  monetary  basis — is  the  conclusion  of  the  management 
in  plants  where  several  years  of  trial  has  provided  a  basis  for  judgment. 
As  examples  of  this,  we  have  the  experiences  of  the  Hood  Rubber  Company, 
Watertown,  Massachusetts;  the  Cheney  Silk  Company,  South  Manchester, 
Connecticut,  and  Sears-Roebuck  &  Company,  Chicago. 

At  the  Hood  Rubber  Company1  a  specialist  has  been  employed 
for  three  years  on  a  part-time  basis,  giving  three  hours  a  morning  almost 
entirely  to  eye  examination  and  visual  correction.  The  mechanical  work 
is  carried  out  by  a  manufacturing  concern  that  sends  a  representative 
to  take  frame  measurements  and  adjust  delivered  glasses,  the  company 
paying  for  the  glasses  at  less  than  the  usual  retail  rate  and  charging  the 
employee  the  same,  in  weekly  payments  where  necessary.  The  entire 
expense  for  the  specialist,  however,  is  carried  by  the  firm.  The  employee 
in  whom  a  condition  of  sub-standard  vision  is  determined  at  the  time  of 
examination  for  employment  or  any  subsequent  examination,  is  advised 
to  avail  himself  of  this  service,  and  most  of  them  do,  but  there  is  no  com- 
pulsion and  no  exclusion  from  employment  because  of  sub-normal  acuity. 
All  employees  reporting  at  the  hospital  complaining  of  symptoms  that 
might  be  considered  asthenopic  in  character  are  referred  to  the  special- 

1  Quimby,  R.  -S.  Hood  Rubber  Company,  Watertown,  Mass.  Personal  Inter- 
view. April,  1921. 


382  WASTE  IN  INDUSTRY 

ist.  The  total  number  supplied  with  glasses  was  about  1,000  per  year. 
The  opinion  as  to  results  has  been  based  on  personal  observation  of  fore- 
men and  personal  comments  of  the  employees  themselves. 

At  the  Cheney  Silk  Company  l  and  at  Sears-Roebuck  &  Company  2 
the  method  is  somewhat  different,  those  falling  below  standard  or  com- 
plaining of  symptoms  being  sent  to  one  specialist  whom  they  pay 
for  the  examination  at  a  very  reduced  rate,  so  arranged  because  of  the  num- 
ber and  the  fact  that  the  companies  assure  payment.  Glasses  are  supplied 
through  the  house  at  wholesale  or  reduced  rates,  on  the  installment  plan 
where  necessarjr.  The  time  loss  incident  to  the  examination  is  at  the  com- 
panies' expense,  but  this  has  been  shortened  to  a  probable  minimum. 
Here  again  the  reports  of  foremen,  department  heads  and  industrial 
workers  have  been  such  as  to  lead  to  continuation  of  the  service. 

Measuring  Degree  and  Permanence  of  Benefit. — Approximate  valua- 
tion figures  may  be  secured  as  further  study  gives  more  data,  and  as 
labor  conditions  become  sufficiently  stable  that  other  factors  may  be 
held  at  a  stationary  level  while  quantity  and  quality  variations  in 
production  before  and  after  correction  of  vision  may  be  observed. 
Figures  may  be  secured  either  for  numbers  of  individuals — Dr.  Burlingame 
believes  valuable  data  can  be  better  obtained  thus — or  for  groups  in 
separate  occupations.  The  unusual  difficulty  of  maintaining  the  other 
factors  at  a  stationary  level  is  emphasized  by  Dr.  Burlingame  who  found 
that  the  definite  improvement  noted  in  individual  cases  was  quite 
temporary,  the  period  over  which  it  lasted  being  only  six  weeks  to  two 
months,  and  concluded  that  it  was  the  result  of  the  psychic  stimulation 
incident  to  the  examination,  the  supplying  of  glasses  which  were  worn 
for  the  first  time,  and  the  feeling  of  being  watched.  Dr.  Fisk  feels  that 
though  it  may  not  be  possible  to  show  that  there  is  an  improvement 
immediately  following  corrective  measures,  a  drop  in  efficiency  that  would 
otherwise  surely  come  later  would  be  prevented.3  This  conclusion  is 
necessarily  reached  by  speculative  means  but  the  groundwork  on  which 
it  is  built  is  apparently  sound. 

Question  of  Correcting  All  Sub-Normal  Vision. — It  may  be  possible 
through  study  to  decide  as  to  the  soundness  of  the  theory  that  advises 
correction  of  all  vision  falling  below  a  certain  level,  this  level  at  a  height 
varying  with  the  acuity  requirements  of  the  different  grades  of  work. 
Dr.  Nelson  M.  Black  states  that  "  a  person  with  one-fourth,  one-third  or 

1  Burlingame,  C.  C.      Cheney  Silk  Company,  South  Manchester,  Conn.     Personal 
Interview.    April,  1921. 

2  Mock,  Harry  E.      Sears-Roebuck  &  Company,  Chicago.     Personal  Interview. 
April,  1921. 

•Fisk,  Eugene  Lyman.  Life  Extension  Institute,  New  York  City.  Personal 
Interview.  April,  1921. 


EYE  CONSERVATION  383 

even  one-half  standard  visions  cannot  be  considered  as  competent  a 
workman  as  one  with  standard,"  1  but  only  much  further  observation 
is  going  to  give  facts  as  to  the  amount  of  time-labor  lost  by  permitting 
continuation  of  work  by  those  with  this  handicap.  The  normal  or  cor- 
rected eye  loses  less  rapidly  in  speed  of  discrimination,  speed  of  adjust- 
ment, and  in  the  power  to  sustain  clear-seeing,  than  the  eye  with  even  a 
slight  visual  defect.2 

Eye  work,  the  use  of  the  eyes,  produces  fatigue,  general  and  local, 
as  does  any  prolonged  physiological  process,  but  with  eyes  approxi- 
mating the  normal  under  good  working  conditions,  Professor  C.  E.  Ferree 
has  demonstrated  this  to  be  barely  appreciable  in  four  hours  as  measured 
by  reduced  sensitiveness.3  But  with  defective  visual  apparatus  requiring 
excessive  corrective  focusing  effort  or  under  sub-optimum  lighting  con- 
ditions, this  fatigue  develops  rapidly  so  that  in  the  same  period  of  time 
the  sensitiveness  may  be  reduced  to  43%  normal.  Any  excess  eye 
fatigue  results  in  nerve  trauma,  which,  repeated  frequently,  produces 
symptoms  so  often  noted  as  to  be  beyond  question — classed  under  the 
heading  of  asthenopia.  When  this  condition  has  been  reached  there 
must  be  a  time-labor  loss  from  reduction  in  quantity  and  quality  pro- 
duction. Where  the  symptoms  are  not  noted  the  fatigue  is  produced 
to  the  same  degree  while  the  reserve  of  adaptation  of  the  individual  is 
such  that  it  is  not  too  far  broken  down,  but  Dr.  Fisk  feels  that  damage 
is  sure  to  come  later  unless  protected  against. 

In  addition  to  this,  actual  loss,  from  failure  to  see  sufficiently  well 
to  determine  details  of  this  process,  or  from  mistakes,  is  frequent  where 
sub-standards  are  not  corrected.  For  example,  at  the  Hood  Rubber 
Company  20%  of  the  inspectors  were  found  to  be  unable  to  see  suffici- 
ently well  to  determine  defects.4 

Frequency  of  Sub-Standard  Vision. — The  percentage  of  employees 
with  sub-normal  vision  has  been  determined  in  several  carefully  recorded 
series  of  investigations.  For  example,  J.  W.  Schereschewsky  found  that 
in  a  total  of  2,906  garment  workers,  only  743,  or  a  little  over  25%  had 
bilateral  normal  vision;  17%  having  normal  vision  in  one  eye,  with  the 
other  defective.5  The  highest  percentage  of  defective  vision  was  in  the 

1  Black,  Nelson  M.      Modern  Illumination  and  its  Relation  to  Ocular  Comfort. 
Wisconsin  Medical  Journal,  1914-1915,  v.  13,  p.  316. 

2  Ferree,  C.  E.  and  G.  Rand.      Effects  of  Variations  in  Intensity  of  Illumination  on 
Functions  of  Importance  to  the  Working  Eye.     Transactions,  Illuminating  Engineering 
Society,  1920,  v.  15,  pp.  769-792. 

3  Ferree,  C.  E.      Problem  of  Lighting  in  Its  Relation  to  the  Efficiency  of  the  Eye. 
Science,  July  17,  1914,  pp.  84-91. 

4Quimby,  R.  S.  Hood  Rubber  Company,  Watertown,  Mass.  Personal  Inter- 
view. April,  1921. 

6  Schereschewsky,  J.  W.  Studies  in  Vocational  Diseases;  The  Health  of  Garment 
Workers.  U.  S.  Public  Health  Bulletin  No.  71,  1915,  p.  75. 


384  WASTE  IN  INDUSTRY 

class  of  workers  who  made  the  greatest  use  of  their  eyes.  The  Life 
Extension  Institute  in  its  examination  of  more  than  10,000  employees 
in  factories  and  commercial  houses  found  53%  with  uncorrected  faulty 
vision.1  The  Institute  in  its  examination  of  675  employees  in  the  Under- 
wood Typewriter  Company,  individuals  engaged  in  close  work,  found 
58%  in  need  of  correction  by  glasses.2  Schereschewsky  is  of  the  opinion 
that  "  properly  fitted  glasses  to  correct  even  small  defects  is,  for  eye 
workers,  an  important  part  of  the  hygiene  of  the  eye."  Of  the  rejections 
in  the  National  Army,  21.7%  were  because  of  eye  trouble.3  An  examina- 
tion of  the  vision  of  3,000  employees  of  the  Robert  Gair  Company, 
Brooklyn,  N.  Y.,  manufacturers  of  paper  boxes,  gave  the  following 
results;  22%  normal,  38%  astigmatic,  28%  hyperopic,  7%  myopic, 
and  5%  color  blind.4 

In  the  Whiting-Davis  Company,  where  a  large  amount  of  close  fine 
work  is  done,  all  the  employees'  eyes  were  tested  with  the  following 
results: 

Glasses  worn  and  satisfactory 8.3% 

New  glasses  ordered  for 83.3% 

No  glasses  needed 8.4% 

After  being  fitted  with  glasses  28%  improved  productivity  was  noted  in 
comparing  two  months.5  The  only  thing  learned  from  further  statistics 
is  a  confirmation  of  the  fact  that  there  are  a  large  number  in  every  group 
of  workers  who  fall  below  the  line.  This  is  appreciably  greater  if  the 
number  with  sub-normal  vision  in  one  eye  are  noted.  The  Bausch  & 
Lomb  Optical  Company,  Rochester,  N.  Y.,  have  merely  required  visual 
correction  without  stipulating  any  individual  to  carry  out  the  examina- 
tion.6 Those  dissatisfied  with  their  glasses  have  reported  to  one  man 
(Mr.  Max  Poser)  and  he  reports  that  more  discomfort  has  resulted  when 
there  was  a  difference  between  the  two  eyes,  even  when  one  approached 
the  normal,  than  with  two  equally  defective  eyes. 

Standards  Essential,  and  Proper  Working  Condition. — As  in  the 
correcting  of  other  factors  of  occupational  hygiene,  standards  have  been 
set,  so,  after  further  study,  visual  acuity  standards  will  have  to  be 

1  Life  Extension  Institute,  New  York  City.      Address  at  Banquet,  December  3, 
1919.     (Pamphlet),  p.  18. 

2  Life  Extension  Institute,  New  York  City.    How   to  Live.     (A  Monthly  Journal 
of  Health  and  Hygiene).    July,  1919,  p.  8. 

3  Survey,  v.  XL,  1918,  p.  90. 

4  Brooks,  C.   H.     Conserving    Eyesight — For   More    Production,    Textile   World 
Journal,  July  17,  1920,  v.  58,  p.  380. 

8  Factory,  July  1,  1920,  pp.  55-56. 

6  Poser,  Max.  Bausch  &  Lomb  Optical  Company,  Rochester,  N.  Y.  Personal 
Interview,  April,  1921. 


EYE  CONSERVATION  385 

determined  for  each  grade  of  workers  and  readjustments  made,  with 
alterations  in  our  methods  of  testing  acuity  to  suit  conditions,  until 
these  standards  give  us  the  necessary  minimum  for  each  kind  of  work. 
As  examinations  are  made  at  present,  any  set  level  would  exclude  workers 
shown  by  practical  test  to  be  very  efficient  producers. 

Many  sub-normal  eyes  will  work  well  even  for  fairly  trying  work  if 
conditions  are  good.  Therefore  it  is  first  of  all  urgent  to  bring  the  work- 
ing conditions  up  to  the  best,  on  the  basis  now  understood.  With 
relation  to  the  eye,  the  first  consideration  is  illumination;  and  on  this 
subject  much  valuable  data  has  resulted  from  the  careful  study  given  it. 

III.  ILLUMINATION 

Improvement  in  Lighting  Conditions  Desirable. — Even  the  most 
superficial  survey  of  lighting  conditions  reveals  that  in  the  majority  of 
plants  there  is  much  improvement  possible,  in  spite  of  the  actual  increase 
in  production  quantity  and  quality  when  poor  illumination  is  corrected  to 
standards  now  considered  satisfactory. 

The  value  of  good  illumination  has  been  recognized  for  some  time. 
It  has  been  demonstrated  to,  and  adopted  by  some  industries;  yet  the 
following  table,  in  agreement  with  the  opinion  almost  universally  expressed 
by  illuminating  engineers,  demonstrates  that  it  has  not  been  sufficiently 
appreciated,  on  a  monetary  basis,  to  force  its  general  adoption.  The  reason 
for  this  is  certainly  not  clearly  evident. 

CONDITION  OF  LIGHTING  IN  446  PLANTS  INVESTIGATED.1 

Excellent 8.7% 

Good 32.0% 

Fair 29.1% 

Poor 18.8% 

Very  poor 3.5% 

Partly  good,  partly  poor 7.8% 

There  seems  to  be  no  question  of  loss  due  to  faulty  conditions.  One 
observer  estimates  the  loss  in  this  country  as  above  the  entire  cost  of 
illumination.2  (1918)  Again  it  has  been  shown  that  improved  lighting 
systems  increased  output  2%  in  steel  plants  and  as  much  as  10%  in  shoe 
factories  and  textile  mills  where  work  is  more  exacting.3  These  are 
very  definite  figures  determined  under  an  accurate  survey,  given  here 
only  for  the  two  extremes,  but  certainly  convincing.  "  Experiments 

1  Eastman,  R.  O.     Transactions  of  the  Illuminating  Engineering  Society.     Febru- 
ary 10,  1920,  v.  XV,  No.  1. 

2  Illuminating  Engineering  Society  Transactions. 

'Eshleman,  C.  L.  Industrial  Lighting.  Proceedings,  American  Institute  of 
Electrical  Engineering,  January,  1913,  pp.  41-54. 


386  WASTE  IN  INDUSTRY 

by  Mr.  Durgin  in  industrial  plants  showed  that  the  work  was  very 
materially  speeded  up  by  increasing  the  average  lighting  two  or  three 
times  what  was  formerly  considered  good  practice.1 

Available  Codes. — Codes  prepared  by  state  industrial  commissions, 
by  the  Illuminating  Engineering  Society  and  by  the  large  manufacturers 
of  lighting  equipment,  make  it  possible  to  determine  suitable  installa- 
tion even  when  an  illuminating  engineer  is  not  employed,  while  new 
simplified  apparatus  makes  the  testing  of  results  practical.  There  is  at 
least  one  small,  compact,  reasonably  accurate  foot-candle  meter  on  the 
market.  Also  much  can  be  done  in  the  smaller  concerns  by  the  common 
sense  application  of  the  rules  laid  down  in  these  codes  without  undue 
expenditure. 

Requirements  for  Efficient  Lighting. — The  simple  requirements  on 
which  efficient  illumination  is  based  are: 

1.  Light  enough  to  see  by  to  do  work — too  little  or  too  much  producing  dis- 

comfort. 

2.  Diffusion  to  avoid  sharp  contrasts  and  deep  shadows. 

3.  Elimination  of  glare. 

The  quantity  or  intensity  of  illumination  necessary  to  produce  a 
brightness  of  surfaces  such  that  the  eye  can  perform  its  functions,  covers 
an  enormous  range.  All  that  is  necessary  for  ordinary  comfortable 
reading  is  1.73  foot-candles,  but  this  is  below  the  best  for  most  kinds  of 
work.  The  standards  required  in  the  Massachusetts  tentative  code 2 
are  as  follows,  expressed  in  terms  of  foot-candles  at  the  work:  (a)  road- 
ways and  yard  thoroughfares,  ordinary  practice  0.05  to  0.25,  minimum 
0.02;  (6)  storage  spaces,  ordinary  practice  0.05  to  1.00,  minimum  0.25; 
(c)  stairways,  passageways,  aisles,  toilets,  and  washrooms,  ordinary 
practice  0.75  to  1.59,  minimum  0.50;  (d)  rough  manufacturing,  such  as 
rough  machining,  rough  assembling,  rough  bench  work,  ordinary  practice 
2.00  to  4.00,  minimum  1.00;  (e)  rough  manufacturing,  involving  closer 
discrimination -of  detail,  ordinary  practice  3.00  to  6.00,  minimum  2.00; 
(/)  fine  manufacturing,  such  as  fine  lathe  work,  pattern  and  tool  making, 
light-colored  textiles;  office  work,  such  as  accounting,  typewriting,  etc., 
ordinary  practice  4.00  to  8.00,  minimum  3.00;  (g)  special  cases  of  fine 
work,  such  as  watch  making,  engraving,  drafting;  close  work  on  dark- 
colored  textiles,  ordinary  practice  8.00  to  15.00,  minimum  5.00. 

1  Ferree,  C.  E.  and  G.  Rand.    Effect  of  Variations  in  Intensity  of  Illumination  on 
Functions  of  Importance  to  the  Working  Eye.     Transactions,  Illuminating  Engineering 
Society,  1920,  v.  15,  pp.  769-792. 

2  Massachusetts  State  Board  of  Labor  and  Industries.     Tentative  Draft  of  Rules 
and  Regulations  for  Lighting  Factories,  Mills  and  Other  Industrial  Establishments, 
1918. 


EYE  CONSERVATION  387 

Experiments  with  Varied  Intensities. — Discussing  the  effect  of  vari- 
ations of  intensity  of  illumination  on  functions  of  importance  to  the 
working  eye,  before  the  Illuminating  Engineering  Society,  October,  1920, 
C.  E.  Ferree  and  Gertrude  Rand  said: l 

"  Some  of  the  beneficial  results  of  increase  of  intensity  may  be  summarized  in 
six  (6)  points:  (1)  Slow,  but  substantial  gain  in  acuity  for  all  but  low  intensities 
where  the  gain  is  rapid;  (2)  gain  in  speed  of  discrimination;  (3)  gain  in  speed  of 
adjustment;  (4)  gain  in  the  power  to  sustain  clear  seeing;  (5)  if  the  task,  not  the 
visual  angle,  is  kept  the  same  for  the  different  illuminations,  i.e.,  if  the  working 
visual  angle  is  changed  to  sustain  the  same  percentage  to  the  minimum  visual 
angle  at  which  the  observer  can  just  discriminate  detail  at  the  different  illumina- 
tions, there  seems  to  be  no  measurable  effect  of  increase  of  illumination  on  the  power 
of  the  normal  eye  to  sustain  the  clear  seeing  of  its  object  for  a  period  of  time.  (6) 
Does  the  eye  tend  to  fatigue  more  under  the  high  illumination?" 

In  one  series  of  experiments  four  observers  were  used  and  the  acuity 
was  determined  at  0.001,  0.005,  0.01,  0.015,  0.02,  0.05,  0.01,  0.2,  0.4, 
1,  2,  3,  5,  10  and  20  foot-candles  of  light  normal  to  the  test  object. 

Determinations  were  made  of  the  time  required  to  change  the  eyes 
from  a  position  of  exact  adjustment  for  a  clear  seeimr  of  the  test  object 
at  20  cm.  (7f  in.  to  one  at  6  meters  (19  ft.  8  in.)  and  back  again  to 
20  cm.  (7|  in.) 

The  ideal  condition  is  to  have  the  illumination  of  correct  intensity 
as  uniformly  distributed  as  possible  over  the  field  of  vision  with  no  extremes 
of  surface  brightness.2  Dr.  P.  W.  Cobb  holds  that  the  visual  acuity 
is  best  when  the  brightness  of  the  surroundings  is  about  equal  to  that 
upon  which  the  vision  is  centered.3  Cravath  finds  that  the  comfortable 
limiting  ratio  between  the  brightest  surface  and  its  surroundings  varies 
somewhere  between  1  to  100  and  1  to  200  and  preferably  until  we  have 
more  evidence,  the  contrasting  brightness  of  adjacent  surfaces  should, 
if  practicable,  be  kept  below  the  1  to  100  ratio  where  long-continued 
work  is  done.4  No  brilliant  light  source  should  be  so  located  that  it 
is  visible.  It  is  especially  a  source  of  discomfort  when  it  comes  from 
below  as  reflected  from  working  surfaces.  The  theory  is  that  the  lower 
part  of  the  retina  has  for  centuries  past  been  the  part  that  has  received 
the  greater  intensity  of  b'ght  and  has  become  adapted  until  this  excess 

1  Ferree,  C.  E.  and  G.  Rand.     Effect  of  Variations  in  Intensity  of  Illumination  on 
Functions  of  Importance  to  the  Working  Eye.     Transactions,  Illuminating  Engineering 
Society,  1920,  v.  15,  pp.  769-792. 

2  Black,    N.   M.     Modern  Illumination    and    Its  Relation    to    Ocular    Comfort. 
Wisconsin  Medical  Journal,  1914-1915,  v.  13,  p.  316. 

3  Cravath,  J.  R.     Ocular    Relations  of  Interior   and  Exterior  Lighting,  American 
Encyclopaedia  of  Ophthalmology,  1916,  v.  VIII,  p.  6,140. 


388  WASTE  IN  INDUSTRY 

stimulation  causes  less  discomfort  than  light  in  excess  coming  from  below 
onto  the  upper  part,  even  of  sun  origin,  as  reflection  from  sand,  snow  or 
water.  It  is  also  a  fact  that  the  upper  lid  and  upper  lashes  protect  the 
pupil  area  to  a  greater  extent  than  do  the  lower. 

Reflectors  or  shading  devices  used  with  lamps  placed  above  the 
heads  of  the  users  should  be  constructed  so  that  the  shades  intercept  the 
light  emanating  from  the  lamp  at  all  angles  more  than  25  degrees  from 
the  vertical.1 

The  Massachusetts  code  gives  "15  degrees  or  less  below  horizontal 
for  light  less  than  20  feet  high."  The  position  of  the  shading  can  be 
worked  out  in  each  individual  instance  without  regard  to  the  theory  of 
angles  if  the  basic  principle  is  considered  that  no  artificial  light  should  be 
placed  so  that  its  undiffused  light  will  shine  directly  in  the  eyes  of  the  user 
or  those  near  by  for  any  considerable  length  of  time.  The  more  fixed 
the  position  of  the  user  the  more  important  this  is.  As  a  first  step  the 
least  that  can  be  done  is  to  use  diffusing  glass  globes,  reflectors  or  shades 
between  the  eyes  and  the  light.  All  are  agreed  that  glare  must  be 
controlled. 

The  three  types  of  lighting  systems  may  be  briefly  and  practically 
summed  up  as  follows: 

Types  of  Lighting  Systems — Direct. — The  advantages  of  the  direct 
system  are  low  cost  of  installation  and  maintenance,  economic  distribu- 
tion of  lamps,  and  little  loss  by  absorption.  The  disadvantages  include 
a  tendency  to  over-light  the  work  and  leave  sharply  contrasting  dark 
areas  around  it.  Such  localized  lighting  with  opaque  reflectors  should 
only  be  used  in  connection  with  some  good  system  of  generalized  lighting. 

Semi-direct. — The  semi-direct  in  which  the  brightness  of  the  bowls 
is  reduced  below  250  milliamberts  meets  certain  requirements.  These 
reflectors  are  best  when  made  of  dense  glass  or  similar  material,  highly 
polished  on  the  inside  so  that  the  globe  gives  about  the  same  brightness 
for  equal  area  as  the  reflecting  ceiling.  This  requires  a  greater  wattage 
than  the  direct  systems  but  there  is  a  reduction  of  the  glare  and  a  much 
better  diffusion. 

Indirect. — In  this  system  the  source  is  hidden  by  an  opaque  bowl 
and  all  illumination  comes  from  ceiling  reflections.  The  glare  is  reduced 
to  a  minimum,  shadows  are  practically  abolished  and  the  greatest 
diffusion  is  assured.  Fatigue  is  much  slower  than  with  either  of  the  other 
two  systems  for  work  that  requires  reading.  Reading  and  similar  use 
of  the  eyes  seems  to  offer  a  very  different  condition  in  fatigue  development 
than  do  various  forms  of  work.  Highest  acuity  and  least  loss  from  fatigue 
cannot  be  had  at  the  same  artificial  intensity  (both  being  obtainable  under 
correctly  controlled  daylight  only.)  "  For  all  purposes  of  clear  seeing, 
1  American  Encyclopaedia  of  Ophthalmology. 


EYE  CONSERVATION  389 

whether  the  criterion  be  maximal  acuity  or  the  ability  of  the  eye  to  hold 
its  efficiency  for  a  period  of  work  the  best  results  are  given.  ...  by  the 
systems  that  give  the  best  distribution.  The  effect  of  distribution, 
however,  on  the  ability  of  the  fresh  eye  to  see  clearly  is  not  nearly  so  great 
as  it  is  on  the  power  to  hold  its  efficiency  for  a  period  of  work." ]  Indirect 
lighting  is,  therefore,  probably  the  best  artificial  system  for  office  use,  but 
might  be  a  hindrance  in  other  kinds  of  work  because  of  a  decrease  in  the 
possibility  of  judging  distances,  due  to  the  artificial  appearance  created 
by  the  elimination  of  shadows.  Intensity  on  the  working  plane  with 
indirect  illumination  usually  specified  is  2.5  to  3.5  foot-candles.2  The 
use  of  an  opaque  eye  shade  did  not  increase  efficiency;  in  fact  reduced 
it  with  indirect  system  unless  the  shade  was  lined  with  white. 

Daylight. — Daylight  from  windows  is  superior  in  that  it  is  light  from 
a  large  source  that  strikes  the  desk  tops  at  an  angle  which  is  usually  such 
that  the  glare  from  papers  is  reduced  to  a  minimum.  The  window  area 
should  be  as  large  a  percentage  of  the  total  wall  area  as  possible.  Trans- 
lucent shades  to  cut  out  direct  sunlight  must  be  fitted  to  windows  where 
needed,  working  from  the  bottom  upward  or  from  the  top  as  conditions 
indicate.  Ground  glass  and  the  like  should  be  avoided  in  window  sashes 
that  are  at  or  below  the  level  of  the  eye,  as  they  introduce  a  brightness 
equal  to  or  greater  than  that  of  the  sky  on  a  part  of  the  retina  which  is 
particularly  susceptible  to  irritation  from  glare.  The  contrast  to  the 
adjoining  walls  and  floor  is  also  much  too  great.  Fireproof  glass  is  used 
to  a  great  degree  at  the  present  time,  making  this  a  common  condition. 
Clear  glass  gives  an  area  of  brightness  only  equal  to  that  of  the  landscape. 
When  the  adjoining  building  makes  the  angle  from  the  sky  very  sharp, 
prism  glass  (there  are  several  commercial  forms)  may  be  used,  preferably 
only  in  the  upper  half. 

Placing  of  Machines. — The  position  of  machines  is  of  great  importance 
in  getting  the  best  results  from  window  lighting.  This  must  be  worked 
out  according  to  the  nature  of  the  process  and  the  location  where  maxi- 
mum intensity  is  desired.  The  north  exposure,  "  saw  tooth,"  roof  illumina- 
tion meets  most  requirements  but  is  available  only  where  low  property 
values  permit  the  use  of  one-story  plants.  It  has  to  a  great  degree  been 
taken  for  granted  that  day-light  supplied  the  best  illumination  and  up 
to  the  present  time  this  is  probably  true,  where  it  is  of  proper  intensity 
and  properly  controlled,  for  the  diffusion  is  more  easily  secured,  the 
limits  of  comfortable  intensity  are  much  wider  apart,  and  fatigue  is 
much  slower  in  developing  than  with  most  artificial  lighting.  This 
may  not  continue  to  be,  when  lighting  practices  develop  efficiency; 

1  Illuminating  Engineering  Society  Transactions,  v.  X,  1915. 

2  Black,   N.   M.     Modern    Illumination  and  Its  Relation   to  Ocular    Comfort. 
Wisconsin  Medical  Journal,  1914-1915,  v.  13,  p.  316. 


390  WASTE  IN  INDUSTRY 

and  the  perfect  uniformity,  obtainable  only  with  artificial  means  not 
influenced  by  weather  changes,  may  bring  a  sufficient  advantage  to  make 
it  the  superior  form.  Certainly  the  daylight  is  the  cheaper  and  will  con- 
tinue to  be  so  for  a  long  time. 

Need  for  Campaigns  in  Smaller  Plants. — The  cost  for  providing 
adequate  illumination  for  the  entire  industry  of  the  country  would 
amount  to  one-half  per  cent  to  one  per  cent  of  wages.1  The  cost  per 
capita  of  correcting  vision,  instituting  and  carrying  out  measures  of  pro- 
tection against  hazards  and  bringing  the  lighting  up  to  good  standards, 
is  definitely  greater  in  the  small  plant  than  in  the  larger  organizations — 
those  employing  two  thousand  workers  or  more — and  the  small  plants 
are  in  the  large  majority.  These  smaller  plants  are  therefore  less  ready 
to  take  up  any  of  these  measures  unless  the  early  returns  of  a  dividend 
can  be  clearly  shown.  Reports  of  more  study,  the  example  of  the  earlier 
ones  to  take  the  steps,  must  be  brought  before  them  constantly  so  that 
efforts  to  check  preventable  loss  along  these  lines  may  become  more 
nearly  universal. 

ACKNOWLEDGMENT 

I  wish  to  make  acknowledgment  of,  and  express  appreciation  for, 
valuable  help  and  information  received  in  the  preparation  of  this  report 
from  Dr.  Cassius  D.  Westcott,  Chicago;  Dr.  Harry  E.  Mock,  Chicago; 
Dr.  Otto  Geier,  Cincinnati;  Dr.  C.  C.  Burlingame,  South  Manchester, 
Connecticut;  Dr.  R.  S.  Quinb}r,  Watertown,  Massachusetts;  Dr.  Irving 
Clark,  Worcester,  Massachusetts;  Dr.  J.  W.  Schereschewsky,  United 
States  Public  Health  Service;  Dr.  James  Bordley,  Baltimore;  Dr.  Cross, 
Chester,  Pennsylvania;  Dr.  Sawyer,  Rochester,  New  York;  and  Mr. 
Max  Poser,  Rochester,  New  York. 

EARLE  B.  FOWLER. 

1  National  Safety  Council,  Chicago,  News  Letter  No.  10. 


CHAPTER  XVII 

PURCHASING  AND  SALES  POLICIES 
BY  C.  E.  KNOEPPEL 

Waste  from  Neglect  of  Protective  Policies. — Investigations  into  the 
operation  of  industrial  enterprises  have  frequently  disclosed  wasteful 
conditions — particularly  in  concerns  which  have  enjoyed  a  long  period  of 
prosperity  due  to  the  nature  of  the  product  or  some  other  special  advantage 
— which  are  attributable  to  a  failure  to  adopt  a  protective  policy  in  the 
event  of  a  contraction  in  sales  volume..  As  a  result  of  a  great  demand  for 
goods  many  of  these  companies  have  failed  to  follow  conservative  plans. 
Much  waste  can  be  charged  to  this  fact,  including  the  waste  due  to  the 
enormous  fluctuations  in  production.  It  was  common  among  such 
companies  to  sell  all  the  product  they  could  make  practically  at  their 
own  price.  These  who  "  plunged  "  most  heavily  into  production  succes- 
sively "  pyramided  "  their  plant  capacity  until  a  point  was  reached 
where  the  output  facilities  exceeded  those  required  to  meet  the  normal 
demand. 

This  condition  has  resulted  from  the  domination  of  the  business  by 
financial  and  sales  interests.  The  process  may  be  outlined  in  this  way : 

As  the  industry  grew  and  more  and  more  business  rolled  in,  more  capital 
was  secured  or  money  borrowed,  to  be  invested  in  fixed  assets  to  permit 
of  further  increases  of  output.  The  working  capital,  however,  was  not 
usually  correspondingly  increased.  With  the  sales  department  calling 
for  volume  of  output  it  was  natural  that  maximum  production  should  be 
sought  almost  regardless  of  costs,  because  the  apparent  profits  were  large. 
As  this  policy  was  extended,  additional  equipment  was  installed;  night 
shifts  were  put  on;  more  buildings  planned  and  the  sales  program  broad- 
ened. So  long  as  demand  kept  pace  with  the  increasing  production  the 
industry  prospered.  But  at  the  first  temporary  slackening  of  demand 
stock  piled  up,  and  soon  the  working  capital  was  found  to  be  insufficient. 
Then  came  shut-downs,  unemployment,  disruption  of  the  producing  and 
sales  organizations  and  possibly  refinancing  controlled  by  other  than  the 
original  owners. 

The  result  of  a  faulty  purchasing  and  sales  policy  has  been  here 
briefly  sketched  with  reference  to  a  rapidly  growing  industry.  This 

391 


392  WASTE  IN  INDUSTRY 

same  policy  is  no  less  harmful  in  an  established  industry  where  an  attempt 
is  made  to  secure  the  major  volume  of  profit  through  the  appreciation 
in  value  of  stocks  of  raw  materials,  rather  than  from  efficient  production. 

To  trace  the  effect  of  these  faulty  purchasing  and  sales  policies  upon 
the  operation  of  industry  it  is  wise  to  realize  the  distribution  of  respon- 
sibility among: 

Financial  backers  and  owners — or  capital. 

Executives — or  management. 

Workers — or  labor. 

Industrial  stability  is  firmly  founded  when  based  upon  the  proper 
interdependence  of  banker,  manager  and  worker.  But  because  man- 
agement is  the  keystone  of  the  industrial  structure,  the  managers  as  the 
performing  executive  agency  are  chiefly  responsible  for  the  improvement 
which  will  do  away  with  the  present  industrial  shortcomings. 

Responsibilities  of  Management. — Management's  manifold  respon- 
sibilities are  positive,  well  defined,  unescapable: 

1.  To  establish  sound  business  policies. 

2.  To  finance  the  enterprise. 

3.  To  control  the  expenditure  of  funds. 

4.  To  develop  an  organization  whose  functions  are  logically  assigned  to  com- 
petent individuals. 

5.  To  design,  test,  improve  and  warrant  a  product  which  is  to  be  distributed  in 
relation  to  demand  and  competition. 

6.  To  build  or  secure  plant  and  equipment  and  utilize  them  economically  and 
effectively. 

7.  To  procure  adequate  supplies  of  proper  materials. 

8.  To  maintain  a  suitable  supply  of  labor  and  supervise  and  co-ordinate  its 
effect. 

9.  To  organize  and  sustain  proper  relationships  between  owners  and  workers. 

10.  To  formulate  procedure  based  upon  practicable  and  economical  methods. 

11.  To  manufacture  and  sell  at  a  profit. 

Most  of  these  responsibilities  have  a  bearing  upon  or  are  influenced 
by  the  purchasing  and  sales  policies.  The  most  serious  faults  of  the 
latter  as  indicated  in  previous  paragraphs  lead  to : 

Uneconomic  and  speculative  purchases. 
Unscientific  price  setting. 

Results  of  Speculation  and  Unscientific  Price  Setting. — Speculative 
purchases  and  unscientific  price  setting  injure  both  industry  and  com- 
merce through  bringing  about: 

1.  Unemployment. 

2.  Reduced  wages. 

3.  Reduced  operation  of  plants. 

4.  Exaggerated  seasonal  demand. 

5.  Losses  in  a  falling  market  after  plant  purchases  have  been  made  at  high  prices. 


PURCHASING  AND  SALES  POLICIES  393 

6.  Alternate  and  excessive  business  fluctuations.     At  one  time  depression  and 
business  stagnation:  At  another  time  activity  and  over-expansion. 

7.  Abnormally  low  prices  in  depressed  periods  and  abnormally  high  prices 
during  excessive  production. 

8.  Unnaturally  high  costs  during  periods  of  operation  which  are  either  below 
and  above  normal. 

9.  Irregular  but  periodic  idleness  of  capital,  plant,  material  and  labor. 

Need  of  Stabilization. — The  evils  mentioned  in  the  preceding  section 
affect  the  buying  and  consuming  that  react  to  price  changes.  If  high 
prices  are  very  high,  demand  is  stifled  because  of  a  concerted  waiting 
for  lower  prices.  If  prices  are  too  low  demand  is  unduly  stimulated, 
for  too  free  buying  creates  a  false  indication  of  need,  which  tends  to 
increase  production  beyond  normal  requirements.  Too  free  buying 
also  is  soon  reflected  in  higher  prices,  whose  inflation  above  a  seasonal 
level  deters  buying,  stifles  demand,  and  consequently  lessens  production. 

Both  effects  are  vicious.  The  one  lessens  production  directly  by 
inflating  prices;  the  other  lessens  production  indirectly  by  first  over- 
estimating demand  which  as  a  consequence  inflates  prices.  If,  on  the  other 
hand,  we  produced  pig  iron  at  a  more  uniform  monthly  tonnage  rate 
during  dull  times,  we  should  not  have  an  abnormally  low  price;  the 
temporary  excess  production  would  furnish  pig  iron  in  good  times  without 
an  abnormally  high  price. 

The  stabilization  which  this  process  brings  can  be  likened  to  the 
conservation  and  use  of  a  water  supply.  By  storing  the  flood  water 
and  releasing  it  at  a  uniform  rate  over  a  long  period  irrigation  is  supplied 
when  and  as  needed.  Uniform  production  to  cope  with  and  satisfy 
nation-wide  variations  in  demand  will  come  only  by  adopting  this  policy 
of  storing  in  slack  times  and  releasing  in  boom  times.  The  evils  of 
economic  and  speculative  purchasing  and  unscientific  price  setting  can 
be  cured  only  by  a  change  in  policy,  not  by  a  modification  of  administra- 
tive methods. 

Speculative  Profits  and  Unforeseen  Losses. — Far  too  often  the  faults 
in  purchasing  have  been  considered  a  necessary  evil.  Depreciation  in 
inventory  values  upon  a  falling  market  was  regarded  as  something  to 
be  expected,  as  well  as  gains  on  a  rising  market.  Wise  financial  man- 
agement anticipated  the  former  condition  and  congratulated  itself  on  the 
latter.  This  situation  is  shown  strikingly  in  the  reported  1920  statements 
of  two  large  manufacturing  companies.  One  was  able  to  charge  the 
larger  part  of  these  losses  (amounting  to  $11,151,444)  against  reserves 
previously  set  up  to  meet  such  a  contingency.  After  setting  aside  a 
considerable  new  reserve  to  meet  any  new  losses  that  may  arise,  this  com- 
pany was  able  to  show  adequate  working  capital.  The  other  company 
not  only  failed  to  anticipate  such  losses  (amounting,  in  its  case,  to 
$18,247,000,  estimated  as  of  December  31,  1920),  but  actually  had  reduced 


394  WASTE  IN  INDUSTRY 

its  working  capital  in  the  face  of  an  enormous  expansion  of  fixed  invest- 
ment. The  results  were  fatal.  In  a  newspaper  advertisement  in  the 
spring  of  1921,  referring  to  this  latter  company,  a  further  provision  is 
shown  in  its  balance  sheet  of  $32,850,000,  to  care  for  depreciated  material 
on  hand  and  on  contract. 

Combined  with  the  thought  that  uneconomic  purchasing  is  a  neces- 
sary evil  is  the  desire  to  increase  profits  by  speculating  in  raw  materials, 
buying  when  they  are  low  in  price  and  selling  the  product  made  from 
them  after  they  have  appreciated  in  the  market.  This  form  of  speculation 
is  a  recognized  practice  in  the  purchasing  of  many  great  staple  materials, 
such  as  cotton,  wool,  leather,  crude  rubber  and  sugar.  Industrial  failures 
are  frequently  recorded,  caused  by  "  getting  caught "  with  high  priced 
stocks  of  material.  On  the  other  hand  profits  are  frequently  made  from 
plants  most  inexpertly  managed  as  producing  units  merely  through 
"  luck  in  guessing  the  market  for  material." 

The  Material  Adjustment  Account. — It  will  not  do  to  say  that  the  losses 
due  to  uneconomic  and  speculative  purchasing  cannot  be  discovered  and 
responsibility  placed  where  it  belongs.  It  is  management's  business 
to  discover  such  losses  and  to  separate  them  from  losses  due  to  operating 
as  well  as  from  those  due  to  volume.  To  do  this  with  even  a  fair  amount 
of  trade  co-operation,  means  to  advance  a  long  way  toward  policies  which 
will  stabilize  industry. 

It  is  therefore  recommended : 

1.  That  raw  material  be  charged  at  current  prices. 

2.  That  use  be  made  of  a  "material  adjustment  account  "  for  raw  materials. 

If  the  first  recommendation  is  adopted  the  advantage  from  specu- 
lative buying  is  removed.  Variations  between  the  actual  cost  of  materials 
and  the  cost  charged  at  current  prices  may  be  adjusted  by  means  of  the 
account  named  in  the  second  recommendation. 

Into  the  "  material  adjustment  account "  is  charged  the  difference 
between  the  actual  and  current  material  costs.  This  practice  is  par- 
ticularly desirable  for  pig  iron,  scrap  iron,  coal,  steel  products,  coke, 
rubber,  lumber,  cotton,  wool  and  other  materials  of  a  staple  nature. 
The  account  so  established  would  exhibit  the  profit  and  loss  as  between 
the  purchase  price  of  material  and  the  price  which  is  charged  into  the 
cost.  For  example,  suppose  pig  iron  to  be  purchased  at  $35  a  ton  and 
suppose  the  market  later  to  drop  to  $30.  The  cost  records  would  be 
charged  at  this  latter  rate  of  $30  covering  the  tonnage  actually  used, 
and  the  "  material  adjustment  account  "  would  be  credited  with  the  same 
figure.  A  second  entry,  however,  would  credit  the  inventory  account, 
at  the  actual  cost  of  $35,  for  the  tonnage  so  used,  with  a  corresponding 
charge  to  the  "  material  adjustment  account,"  the  difference  representing 


PURCHASING  AND  SALES  POLICIES  395 

the  loss  on  the  material  so  used.  The  cost  would  then  be  figured  on  the 
basis  of  the  normal  condition  which  existed  at  the  time  the  material  was 
used.  The  difference  would  be  carried  to  profit  and  loss  at  the  end  of  the 
year. 

An  Adjustment  Account  for  Overhead. — The  same  principle  applies 
to  overhead.  By  ascertaining  the  normal  capacity  of  a  plant — which 
may  vary  from  75  to  85%  of  full  capacity — by  standardization  of  over- 
head, by  determining  fair  standards  of  performance  per  hour  for  the 
various  operations,  by  using  current  prices  for  labor  and  material,  it  is 
possible  to  fix  normal  or  standard  costs.  Add  a  normal  profit  and  a  nor- 
mal selling  price  is  secured. 

Charge  the  difference  between  actual  and  standard  overhead  into  an 
adjustment  account,  the  balance  of  which  can  be  carried  into  profit- 
and-loss  at  the  end  of  the  year.  It  is  plain  that  this  charge  will  decrease 
as  we  approach  normal,  and  that  it  will  cease  altogether  as  soon  as  normal 
is  reached.  Moreover,  as  we  go  above  normal  and  reach  full  capacity  the 
total  charges  will  be  offset  (in  whole  or  in  part)  by  credits  to  this  adjust- 
ment account.  It  is  not  a  difficult  matter  to  carry  out  this  plan.  The 
burden  account  would  be  charged  with  actual  expenditures,  and  the 
work-in-process  would  be  charged  with  the  standard  overhead;  while 
the  difference  between  f<  standard  "  and  "  actual "  overheads  would  be 
charged  to  "  burden  profit-and-loss  account." 

The  time  is  coming  in  industry  when  purchasing  profits  and  losses  and 
volume  profits  and  losses  will  be  carried  forward  from  year  to  year,  on 
the  argument  that  business  does  not  arbitrarily  stop  at  one  moment  in  a 
year,  and  take  on  a  new  form  in  the  next  moment.  Business  is  no  longer 
a  day-to-day  affair,  nor  a  month-to-month  matter.  It  will  get  away 
from  the  year-to-year  aspect  also,  so  that  a  period  of  years,  cycles,  effect 
of  good  and  bad  years  can  be  plainly  visualized. 

Profits  due  to  volume  and  to  purchasing  made  in  one  year  should 
be  shown  in  such  a  way  as  to  constitute  a  fund  to  offset  losses  in  another 
year.  Further,  by  working  on  this  basis  profits  will  be  more  carefully 
studied  and  dividends  will  then  be  paid  and  buildings  and  equipments 
added  to,  from  operating  profits  and  not  from  the  more  or  less  accidental 
profits  due  to  purchasing  and  volume. 

The  reason  we  pay  profits  taxes  in  one  year  when  there  are  profits, 
and  get  no  rebates  in  the  next  when  there  are  losses,  which  is  proving 
harmful  in  industry,  is  because  there  is  now  no  way  to  visualize  and  cal- 
culate profits  and  losses  for  a  period  of  years,  and  this  must  be  the  next 
forward  step  in  industrial  accounting,  sanctioned  by  our  government. 

The  method  to  pursue  in  handling  is  to  set  up  reserves  for  volume 
and  for  purchasing  and  to  treat  them  the  same  as  most  concerns  treat  the 
Reserve  for  Bad  Debts.  This  is  the  recommendation  of  the  Fabricated 


396  WASTE  IN  INDUSTRY 

Production  Department  of  the  U.  S.  Chamber  of  Commerce  and  is  an 
excellent  one. 

Foundation  of  Financial  Support. — Although  these  recommendations 
are  aimed  primarily  to  correct  purchasing  evils  in  industry  they  lay  the 
foundation  for  securing  owners'  and  bankers'  support  for  an  enterprise 
by  presenting  the  opportunity  to  observe  the  relations  between  (1)  Pur- 
chasing profit  and  loss;  (2)  Volume  profit  and  loss;  and  (3)  Operating 
profit  and  loss. 

Market  Analysis. — Domination  of  a  business  by  any  one  factor  is 
prejudicial.  If  the  sales  factor  dominates,  over-optimism  is  apt  to  result 
in  a  faulty  sales  policy  which  ties  up  tremendous  sums  in  materials, 
finished  stock,  plant  and  equipment,  all  beyond  the  amounts  needed. 

A  large  proportion  of  trade  fluctuations  come  from  failure  to  develop 
concerted  and  intelligent  market  analysis.  Often  the  exchange  of  inter- 
trade  statistics  (e.g.,  between  the  automobile  and  rubber  industries)  can 
be  made  mutually  informative  and  helpful.  Not  alone  current  output 
data  but  information  as  to  available  world  supply  of  respective  material 
could  turn  hysterical  grabbing  into  intelligent  anticipation  of  real  needs. 

Wastes  of  Distribution. — Extravagances  of  distribution  are  an 
upstanding  shame  to  American  business.  They  may  equal  or  exceed 
the  more  patent  industrial  wastes  of  production. 

Beginning  as  "  missionary  "  work  believed  to  be  necessary  in  "  edu- 
cating the  public  "  to  some  new  product  or  new  use,  extravagant  methods 
and  practices  grow  beyond  the  bounds  of  common  sense  and  become 
an  active  danger  to  any  trade  which  facilitates  or  even  countenances  their 
continuance.  "  Demonstration "  and  "  guaranty "  are  twin  sources 
of  distributive  effort  that  often  over-run  into  rank  extravagance.  Besides 
the  highly  competitive  spirit  that  often  encourages  extravagant  adver- 
tising campaigns,  the  unequitable  allowance  to  favored  or  insistent 
customers  raises  the  cost  of  distribution — and  sooner  or  later  must  find 
its  way  into  the  selling  price — whereby  all  purchasers  are  forced  to  pay 
for  the  concessions  of  the  few  who  actually  profit  by  them. 

Service  Expenses. — Another  class  of  distribution  expense  concerns 
so-called  "  service  "  during  a  stated  period  after  purchase.  Under  this 
guise,  free-handed  supervisors  may  travel  about,  "  adjusting "  and 
"  entertaining  "  in  a  way  to  foster  their  personal  popularity  rather  than 
that  of  their  firms.  Akin  to  this  is  the  too  common  extravagance  of 
trade  shows  and  conventions  where  good  fellowship  and  mutual  inspira- 
tion sometimes  degenerate  into  excesses  that  reflect  upon  the  trade  as 
a  whole. 

Service-expense  frequently  takes  the  form  of  "  allowances "  to 
retain  the  customer's  goodwill,  when  in  point  of  fact  the  sales  department 
thus  finds  a  way  to  charge  off  considerable  sums  to  "  faulty  products  " 


PURCHASING  AND  SALES  POLICIES  397 

and  thus  make  a  concession,  which  as  a  matter  of  truth  is  no  more  than 
a  gift  to  the  customer.  A  continuance  of  extravagant  allowance  policies 
results  in  more  or  less  open  antagonism  between  salesroom  and  factory. 
In  extreme  cases,  "  sales  mistakes  "  masquerade  as  "  concessions  "  to 
customers'  goodwill.  Lest  this  statement  be  allowed  to  pass  without 
full  understanding,  it  may  be  said  that  in  a  certain  important  industry 
about  10%  of  the  output  is  "  adjusted  "  by  the  sales  department,  although 
a  representative  factory  declares  that  only  one  of  its  products  in  every 
thousand  is  considered  a  "  second  "  by  the  plant  inspectors. 

Sales  Expense. — Sales  expense  has  too  long  been  considered  a  neces- 
sary evil,  supposed  to  be  uncontrollable  and  therefore  neglected.  Here 
again  the  responsibility  of  management  cannot  be  escaped.  It  is  possible 
to  segregate  and  analyze  sales  expense  in  the  same  way  and  degree  as  all 
other  expenses.  It  is  possible  to  make  sure  that  every  proper  item  of 
sales  expense  is  charged  to  the  sales  department.  It  is  also  possible  to 
establish  checks  which  will  prevent  extravagances. 

The  necessity  for  an  adequate  sales  policy  to  overcome  existing  evils 
leads  to  these  recommendations: 

1.  Charge  every  item  of  sales  expenditure  to  the  Sales  Department. 

2.  Arrange  for  a  review  of  sales  programs  by  the  Finance  Department  to  check 
extravagances. 

3.  Place  responsibility  for  customers'  adjustments  in  some  division  other  than 
the  Sales  Department,  and  give  the  Manufacturing  Department  a  voice  in 
preventing  "below  specification"  purchases. 

C.  E.  KNOEPPEL. 


INDEX 


Accidents,  industrial,  see  Industrial  Acci- 
dents 
prevention  of,  27 

in  boot  and  shoe  trades,  163 
Adams,  H.  H.,  376 

American  Writing  Paper  Company,  187 
Andrews,  John  B.,  283  note,  292  note 
Armstrong,  Donald  B.,  357  note 
Armstrong- Jones,  Robert,  342  note 
Associated  General  Contractors,  standard- 
ization by,  89 

Atlantic  Coast  Shipbuilders'  Association, 
218 

Bach,  E.  E.,  368  note 

Bainbridge,  F.  A.,  366 

Bandler,  William  A.,  129 

Barnes,  Charles  B.,  282 

Best,  Harry,  370 

Billings,  Frank,  363  note 

Black,  Nelson  M.,  383  note,  387  note,  389 
note 

Boot  and  Shoe  Industry,  131-174 
causes  of  waste,  133 
cost,  analysis  of,  163 
cost  of  hiring  and  training  operators, 

table  of,  160 
cost  of  shoes,  effect  of  waste  stoppage 

on,  163-165 

distribution  of  industry,  131 
factory  organization,  imperfect,  133 
field  report  evaluation  sheets,  165-173 
internal  congestion,  overcoming,  164 
labor  difficulties,  156-162 
labor  disputes,  basis  for  settling,  162 
lost  production,  results  of,  134 
manufacturing,  total  reduction  in,  165 
material,  waste  of,  155 
over-capacity  of  plants,  132 
piece  rates,  disadvantage  of  uniform, 
161 


Boot  and  Shoe  Industry,  problems  to  be 
solved,  nature  of,  131 

production,  control  of,  142-154 

results  of  labor  turnover,  table  of,  160 

saving  material,  165 

seasonal  business,  135-142 

seasonal  fluctuation,  overcoming,  164 

size  of  shoe  industry,  131 

workers'  loss  of  time,  133 
Bordley,  Dr.  James,  390 
Boyd,  D.  Knickerbacker,  68,  90,  93 
Brehmer,  Helen  E.,  364  note 
Britton,  J.  A.,  345  note 
Brooks,  C.  H.,  384  note 
Brown,  Mabel  Webster,  342  note 
Brownlee,  C.  H.,  362  note 
Brundage,  Dean  K.,  359 
Building  industry,  53-93 

abnormal       conditions — shortage    of 
housing,  55 

actual  days  worked  compared  with 
working  days  possible,  table  of,  64 

causes  of  waste  analyzed,  59 

chart  of  sources  of  waste  in,  52 

conditions  of  financing  in  the  South,  57 

cost-plus  contract,  55 

employment  managers,  lack  of,  67 

estimates,  waste  through  duplication 
of,  11 

extent  of,  54 

field  report  evaluation,  charts  of,  91, 
92 

financing,  abnormal  cost  of,  56 

general  bureau  for  clearing  work,  68 

Greenf elder,  A.  P.,  plan  of  to  reduce 
seasonal  unemployment,  67 

inefficient  management,  53 

irregular  employment,  53,  60-71 

labor,  inefficiency  of,  58 

labor  regulations,  wasteful,  53,  79-85 

labor  turnover  in,  14,  65 


400 


INDEX 


Building  industry,  loss  from  irregular  em- 
ployment, 60 
lost  time,  distribution  of  through  the 

year,  64 

miscellaneous  sources  of  waste,  85-93 
number  of  men  in  different  trades  of, 

54 

peculiarities  of,  54 
Philadelphia  plan,  71 
preventable  waste,  69 
primary  causes  of  waste,  53 
seasonal  unemployment,  67 
secondary  causes  of  waste,  54 
strikes  and  lockouts,  68 
time  lost  due  to  strikes  and  lockouts, 

table  of,  70 

waste  in  management,  72-79 
Bureau  for  clearing  work  in  building  indus- 
try, 68 
Burlingame,  C.  C.,  382  note,  390 

Calendar  of  the  Study,  5 

Cancellations  and  returns,  elimination  and 

curtailment  of,  25 

Capacity    and    demand,    balancing    pro- 
ductive, 25 

Carlin,  Joseph  A.,  129 
Carrel,  Alexis,  354  note 
Clark,  Dr.  Irving,  390 
Clark,  W.  I.,  345  note,  357  note 
Climacteric  unemployment,  273 
Clothing  industry,  labor,  waste  attribut- 
able to,  113-114 
Chicago,  conditions  in,  114 
ill-will  caused  by  seasonal  unem- 
ployment, 113 

New  York,  conditions  in,  114 
strikes  and  stoppages,  113 
management  waste  in,  96-113 
administrative  wastes,  98 
charts  of  number  of  garments  in 

cutting  lots,  99 
charts    showing    distribution    of 

sales  among  models,  97 
cost  system,  112 
design,  variety  of,  103 
distribution  of  sales  among  dif- 
ferent shapes  and  sizes,  charts, 
107 

effects  of  waste  on  workers,  104 
fluctuations  in  personnel  of  cut- 
ters, charts,  100 


Clothing  industry,  management  waste  in 
fluctuations  in  production  and 
personnel,  chart,  103 
fluctuations  in  production,  charts, 

102 
fluctuations  in  shipments,  chart, 

103 
fluctuations    in     total    working 

force,  charts,  101 
loss  to  manufacturers  and  work- 
ers, 103 

machines,  maintenance  of,  106 
models,  limiting  number  of,  104 
operating  wastes,  98 
performance  standards,  108,  110 
planning  and  administration,  in- 
efficient, 108 
production  records  and  versatile 

workers,  111 
recommendations,  104 
seasonal  demand,  100 
sell-and-make  policy,  96 
selling  and  advertising,  105 
slack  seasons,  bridging,  105 
small  lot  manufacture,  100 
standardization,  lack  of,  106 
sub-contracting  system,  112 
time  wasted,  charts,  109 
work  content  of  operations,  107 
outside  contacts,  waste  attributable 

to,  115-117 
cancellations,  115 
mills,  relations  with,  116 
seasonal  bunching  of  demand,  115 
trade  association,  need  of,  116 
sales  policy,  faulty,  15 
Cobb,  Dr.  P.  W.,  387 
Coblentz,  W.  W.,  379 
Committee,  aims  of  in  investigating  waste, 

3 

Commons,  John  R.,  283  note,  292  note 
Community    cooperation    with    industry, 

29 

Comrie,  John  D.,  347  note 
Conklin,  Edwin  Grant,  344  note 
Cost  accounting,  uniform,  26 
control,  lack  of,  13 
-plus  contract  in  building  trades,  55 
systems  survey  of  United  Typothetae, 

13 

Cravath,  J.  R.,  387  note 
Cross,  Dr.,  380,  390 


INDEX 


401 


Crum,  F.  S.,  321,  368  note 
Curley,  William  E.,  93 

Davenport,  Charles  B.,  347  note,  357  note, 

362  note,  364  note 

Defective  vision  and  defective  teeth,  22 
Demand,  distribution  of,  29 
Design  control,  faulty,  11 
Details  of  questionnaire,  34 
Devine,  Edward  T.,  279 
Dexter  Folding  Company,  186 
Dodge,  F.  W.  Company,  54,  93 
Dowling,  Oscar,  362  note,  370  note 
Drinker,  C.  K.,  365  note,  368  note 
Drinker,  K.  R.,  368  note 
Dublin,  Louis  I.,  345  note,  354  note,  355 

note,  356  note,  358  note,  370  note 
Durgin,  Mr.,  386 

Eastman,  R.  O.,  385  note 

Emerson,  W.  B.,  379 

Emmett,  Boris,  361  note 

Employers'  Association  of  Detroit,  211 

Employment  exchanges,  foreign,  287-292 

activities  of  Canadian,  289,  290 
table  of,  287 

Canada,  288 

junior  division,  290 

government-aided,  291 

Great  Britain,  287 

Italy,  291 

survey  of  British,  288 

table  of,  292 

Employment  exchanges  in  United  States, 
277-287 

abuses  in  commercial,  281 

commercial,  281 

criticism  of  state  systems,  280 

employers'  associations'  bureaus,  283 

employment,     distribution,    lack    of 
attempts  to  systematize,  286 

employment  service,  functions  of,  279 

municipal,  281 

poor  opinion  of  public,  281 

private,  281 

public,  federal,  277 

semi-public,  281 

state,  279 

trade  union  bureaus,  285 

trade  union  journals,  286 

union  business  agent,  285 

U.  S.  Employment  Service,  activities, 
278 


Employment,  intermittent  causes  of  tem- 
porary shutdowns  and  layoffs,  265 
seasonal  employment,  265 
temporary,    shutdowns    and    layoffs, 

265 

Eshleman,  C.  L.,  385  note 
Eldredge,  Earle  B.,  93 
Evaluation  sheet,  34 

field  directors'  instructions,  35 
points,  relative  importance,  35 
waste,  calculating,  on  assigned  points, 

35 

waste,  estimate  of  per  cent  of,  35 
Eye  Conservation,  374-390 

accident  to  eyes — industrial  loss,  374 
American  Car  and  Foundry  Co.,  use 

of  goggles,  375 
American  Locomotive  Co.,  reduction 

in  eye  accidents,  table  of,  376 
American  Steel  Foundries,  reduction 

of  eye  accidents,  377 
Bethlehem  Steel  Co.,  use  of  goggles, 

376 
Commonwealth  Steel  Co.,  protective 

methods  of,  375 
dangerous  operation,  377 

dust  and  small  particles,  377 
dust  and  wind,  378 
excessive    dust   and    small    par- 
ticles, 378 

gases,  fumes  and  liquids,  378 
objects,  377 
radiant  energy,  379 
reflected  light  or  glare,  378 
splashing  metal,  378 
goggles,  colored  lenses,  379 

overcoming  objections  to,  380 
requirements  and  standards,  379 
illumination,  385-390 
available  codes,  386 
condition    of    lighting    in,    446, 

plants,  table  of,  385 
daylight,  389 
direct  lighting  system,  388 
ideal  conditions,  387 
improvement  desirable,  385 
indirect  lighting  systems,  388 
intensities,  experiments  with  var- 
ied, 387 

machines,  placing  of,  389 
need  for   campaigns   in   smaller 
plants,  390 


402 


INDEX 


Eye    conservation,   illumination,   require- 
ments for  efficient  lighting,  386 
semi-direct  lighting  systems,  388 
protective  devices — code,  377 
protective  methods,  effectiveness  of, 

374 

statistics  unsatisfactory,  374 
unavoidable  accidents,  380 
Union  Pacific  Railroad  Co.,   use  of 

goggles,  376 
vision,  381-385 

Bausch  &  Lomb  Co.,  testing,  384 
Cheney  Silk  Co.,  system  of  test- 
ing, 382 

correction  of  sub-standard,  381 
Hood    Rubber    Co.,    system    of 

testing,  381 

measuring    degree    and    perma- 
nence of  benefit,  382 
Robert  Gair  Co.,  testing,  384 
Sears,  Roebuck  &  Co.,  system  of 

testing,  382 

standards  essential,  384 
sub-normal,  correcting,  382 
Underwood  Typewriter  Co.,  test- 
ing, 384 
Whiting-Davis  Co.,  testing,  384 

Farnum,  C.  G.,  345 
Farrell,  John  A.,  370  note 
Federal  laws,  revision  of,  32 
Ferree,  C.  E.,  383  note,  386  note,  387 
Field  and  statistical  reports,  6 
Field  evaluation  chart,  50 

in  boot  and  shoe  industry,  165-173 
in  men's  ready-made  clothing  indus- 
try, 117-128 
in  metal  trades,  223-229 
in  printing  industry,  203-208 
in  ready-made  clothing  trade,  117-128 
in  textile  industry,  248-260 
Field  workers,  guide  questions  to,  39-49 
Finar.cing,  abnormal  cost  of,  in  building, 

56 

Fisk,  Eugene  Lyman,  344  note,  346  note, 

348  note,  349  note,  350  note,  354  note, 

356  note,  357  note,  362  note,  364  note, 

367  note,  368  note,  382  note 

Fisher,  Irving,  348  note,  349  note,  350  note, 

351,  355  note,  356  note,  368  note 
Florence,  Philip  Sargent,  365  note 
Frankfurter,  Felix,  365  note 


Gantt,  220 

Gay,  Frederick  P.,  356  note,  362  note 

Geier,  Dr.  Otto,  390 

Gilbreth,  Frank  A.,  367 

Gilbreth,  Lillian  M.,  367  note 

Glover,  James  W.,  355  note 

Goldmark,  Josephine,  365  note 

Governmental  standardization,  32 

Grant,  D.  J.,  93 

Grant,  Madison,  344  note 

Greenfelder,  A.  P.,  67 

Guide  questions  to  field  workers,  36-49 

Hansen,  Edward  H.,  174 
Harris,  L.  I.,  345  note 
Hart,  Hornell,  274,  275 
Hart,  Schaffner  &  Marx,  114 
Haskell,  Robert  S.,  174 
Hayhurst,  Emery  R.,  364  note 
Hays,  W.  S.,  93 

Health,  loss  from,  preventable,  21 
public  policy,  32 
responsibility  of  labor  for  improving, 

28 

statistics  of  diseases  and  loss,  20 
Health  of  industrial  workers,  342-372 

annual   work   of   industrial   medical 

departments,  table  of,  372 
causes  of  death,  in  order  of  frequency, 

table  of,  35'J 
college  death  rate,  358 
community  board  of  health,  371 
death  rate,  decreasing,  348 
death  rate  per  1,000  population  by 

age,  table  of,  350 

definition  of  "industrial  worker,"  342 
direction  of  evolution  in  man,  343 
economic  loss  from  accidents,  table  of, 

369 

economic  loss  from  ill  health  in  indus- 
try, 368 
table  of,  369 
epidemic  and  communicable  diseases, 

362 
fatigue,  364 

factors  in,  367 
in  heavy  work,  table  of,  366 
monetary  loss  from,  367 
favorable  death  rate,  causes  of,  344 
Federal  department  of  health,  370 
focal  infection,  363 
deaths  from,  363 


INDEX 


403 


Health  of  industrial  workers,  health  super- 
vision, possible  savings  from,  table 
of,  354 
heart    disease,    acute    nephritis    and 

Bright's  disease,  table  of,  350 
industrial  insurance  mortality  experi- 
ence, 358 
industrial  responsibility  for  workers' 

health,  371 
industry,  health  conditions  in,  358- 

361 

is  man  physically  deteriorating?,  348 
length  of  "spans"  of  life,  346 
Life    Extension     Institute    physical 

examinations,  362-364 
military  examination,  table  of,  349 
morbidity  rates,  351 
national,  state  and  local  extra-gov- 
ernment agencies,  372 
occupational  poisons  and  disease,  368 
possible  lines  of  organization  to  rem- 
edy unfavorable  conditions,  370 
preventable  illness,  percentage  of,  351 
private  agencies  for  improving  health, 

372 
probability  of  further  improvement, 

353 

psychic  and  physical  trauma,  364-365 
purposes  of  investigation,  342 
reduction  in  death  rate,  358 
rejection  rate  in  military  service.  347 
sick  persons,  number  of,  table  of,  360 
special  items  of  loss,  370 
state  department  of  health,  371 
time  loss  through  illness,  351 
tuberculosis,  monetary  loss  from,  356 
typhoid  fever,  monetary  loss  from,  356 
venereal  infection,  364 
working  population,  analysis  of,  343 
workmen's   sick   and   death    benefit, 

charts  of,  361 
Henry,  Guy  A.,  374  note 
Hoffman,  Frederick  L.,  348  note,  350  note, 

370  note 

Hopkins,  Mary  D.,  365  note 
Hulst,  Myra  M.,  358  note 
Hunter,  Arthur,  357  note 

Idle  material,  17 
Idle  plants  and  equipment,  17 
Idle  men,  intermittent  unemployment,  16 
minimum  unemployment,  15 


Idle  men,  unemployment  caused  by  in- 
dustrial depressions,  15 

unemployment  due  to  labor  disturb- 
ances, 16 
Immigration  and  unemployment,  298-300 

number   and   occupations   of   aliens, 
table  of,  298 

restricting,  recent  measures,  299 

total  alien  immigration  and  emigra- 
tion, 300 

Individual  plants    in   printing    industry, 
management  of,  180-184 

production  standards,  180 
labor's  approval,  184 

quota  time,  method  of  determining, 
182 

theoretical    responsibility   for   waste, 

table  of,  181 
Industrial  accidents,  331-341 

Bethlehem  Steel  Co.,  prevention  in 
plant  of,  333 

cost  of,  331 

days  lost  due  to,  331 

direct  cost  of,  331 

distribution  of  cost  of,  332 

improved    industrial    relations    pre- 
vent, 337 

increased  output  through  preventive 
measures,  334 

indirect  cost  of,  334 

monetary  loss  due  to,  332 

official  estimates  of  possible  saving  in, 
23 

per  cent  reduction  in,  table  of,  333 

prevention  as  stimulus  to  efficiency, 
335 

prevention,  benefits  of,  334 

prevention  conduces  to  better  indus- 
trial relations,  336 

prevention     eliminates    nervousness, 
335 

prevention,  joint  efforts  of  employers 
and  workers  necessary  for,  337 

prevention,  results  accomplished,  332 

prevention,  75%  possible,  333 

prevention,   specific   cases  of  highly 
increased  production  due  to,  336 

relations    of    safety    department    to 
other  departments,  340 

safety  work,  essentials  of,  338 

central  safety  committee,  338 
foremen  and  sub-foremen,  339 


404 


INDEX 


Industrial  accidents,  safety  work,  fore- 
men's inspection  committee, 
339 

foremen's  safety  meetings.  339 
management,  338 
mass  meeting  for  all  employees, 

340 

safety  bulletin  boards,  340 
safety  engineer,  338 
workmen's  safety  committee,  340 
"severity  rate  "of,  332 
teaching  of  English  to  foreigners,  341 
time  and  money  loss  from,  22 
United  States  Steel  Corporation,  sav- 
ing of  through  prevention,  333 
War  Department's  experience,  334 
Industrial  arbitration,   table  of  statutes 

relating  to,  316 

Industrial    rehabilitation,    national    pro- 
gram for,  32 

Industries  studied,  table  of,  4 
Inspection,  25 

Insurance  against  unemployment,  294-296 
American  Federation  of  Labor,  295 
State  compensation,  296 
trade  union  benefits,  294 
Insurance,  liability,  annual  cost  of,  23 
Introduction,  3-7 
Irregular  employment  in  building,  60-71 

Jackson,  C.  W.,  354  note,  357  note,  368 
note 

Keane,  J.  J.,  93 

Kellar,  Frances,  299  note 

King,  James  Joseph,  363  note 

King,  Mary  L.,  364  note 

King,  W.  G.,  379 

King,  W.  I.,  308 

Labor  control,  faulty,  13 

rate  setting,  inadequate,  14 

Labor  difficulties  in  boot  and  shoe  industry, 

156-162 

accident  prevention,  163 
apprentices,  156 
basis  for  settling,  162 
cost  of  training  operatores,  table  of, 

160 

Lynn,  Mass.,  strikes  in,  156 
principles  for  adjustment  of,  31 
rate  setting,  haphazard,  159 


Labor  difficulties  in  boot  and  shoe  industry) 

rates,  accurate,  162 
results  of  turnover,  table  of,  160 
personnel  departments,  158 
piece  rates,  disadvantage  of  uniform, 

161 

shoe  making,  labor  in,  156 
strikes  and  lockouts,  156 
turnover,  labor,  158 
unemployment  due  to,  16 
union  rules,  effect  of,  156 
working  hours,  159 
Labor,  health,  responsibility  of,  for,  28 
industrial  relations,  responsibility  of, 

for,  28 
inefficiency  of,  in  building  industry, 

58 

Labor  in  printing  industry,  193-200 
craft  distinctions,  197 
inefficient  workers,  displacing,  195 
initiative,  194 
monotony,  194 
organization,  193 

production,  decrease  in,  table  show- 
ing, 196 

production  standards,  194 
recommendations  to,  201 
responsibility,  dual,  199 
restrictions  of  output,  196 
speeding  up  work,  195 
Labor  legislation,  variety  of,  31 

production,  responsibility  of,  for  in- 
creasing, 27 

restrictions,  responsibility  of,  for,  28 
standardization,  responsibility  of,  for, 

28 

turnover,  cost  of  in  shoe  trades,  14,  15S 
extreme     example     in     building 

trades,  65 
high  percentage  in  metal  trades, 

14 

in  building  trades,  14 
waste  in  building,  79-85 
waste  in  ready-made  clothing  trade, 

113-114 

Lamb,  J.  J.,  375  note 
Lee,  Frederic  S.,  365  note,  368 
Legal  machinery  for  adjusting  labor  dis- 
putes in  United  States,  315-330 
adequacy  of,  315 

industrial  arbitration,  American  stat- 
utes relating  to,  table  of,  316 


INDEX 


405 


Legal  machinery  for  adjusting  labor  dis- 
putes in  United  States,  nomencla- 
ture of  State  agencies  for  industrial 
conciliation,  table  of,  318,  319 
State  legislation  for  adjusting  labor 

disputes,  table,  of,  317 
statutory    provisions    for    adjusting 

labor  disputes,  table  of,  320-330 
variety  of,  315 

Lescohier,  Don  D.,  278,  282  note,  283 
Lewis,  Richard  B.,  Jr.,  174 
Loeb,  Jacques,  347  note,  354  note 
Lockouts,  see  Strikes. 
Loss  from  irregular  employment  in  build- 
ing industry,  60 

Losses  from  industrial  accidents,  331,  332 
Lost  tune  in  building  trades,  60 
Love,  Albert  G.,  347  note,  357  note,  362 

note,  364  note. 
Low  production,  10-15 
Lynn,  Mass.,  shoe  strikes  in,  156 

Mack,  W.  J.,  269 
Mackenzie,  Nellie  Dunn,  342  note 
Management,  definition,  note  8 
Management  waste  in  building  industry,  72 
cost  keeping  methods,  75 
employment     management,     inade- 
quate, 77 

equipment,  lack  of  proper,  78 
incentive  for  production  and  quality 

needed,  77 

knowledge  of  a  "day's  work,"  75 
lack  of  forethought,  72 
organizing  methods  in  dwelling  con- 
struction, example  of,  76 
planning  on  the  job,  need  of,  73 
preference  list,  78 
progress  schedule,  72 
standardization,  results  of,  76 
Management  waste  in  metal  industries,  220 
in  ready-made  clothing  trade,  96-113 
Massachusetts,  building  trade  accidents, 

86 

industrial  accidents  in,  23 
increase  in  wages'and  cost  of  living  in, 

58 

Material  control,  faulty,  10 
Material  waste  in  boot  and  shoe  industry, 

155 

damaged  shoes,  losses  from,  155 
upper  leather,  cutting,  155 


Mayo,  C.  H.,  363  note 
McElwain  Company,  W.  H.,  149 
Men's  ready-made  clothing  industry,  95- 
129 

extent  and  responsibility  for  waste,  95 

field  report  evaluation  sheets,  117-128 

labor,  waste  attributable  to,  113-114 

location  of  industry,  95 

management,  waste  attributable  to, 
96-113 

outside  contacts,  115-117 
Metal  Manufacturers'  Association  of  Phil- 
adelphia, 217 
Metal  trades  industry,  210-239 

cooperation,  217 

cost  control,  220 

cost  of  labor  turnover,  217 

divisions  of,  213 

equipment,  reduction  in  variety  of, 
219 

executives,  views  of,  210 

extent  of,  211 

field  evaluation  sheets,  223-239 

instability  of  employment,  214 

internal  relations,  216 

labor  turnover  in,  14,  216 

large-scale  shop,  221 

location  of,  213 

management  handling  of  labor,  218 
human  nature  in,  220 
inefficiency  of,  220 

one-man  shop,  221 

plants  studied,  214 

production,  possible  increased,  210 

standard,  variation  from,  221 

standardization,  219 

strikes  and  lockouts,  217 

systems  of  management,  222 

unemployment,  present,  211 

waste  elimination,  218 

waste,  major  causes  of,  214 
Metcalf,  H.  C.,  274 
Metchnikoff,  Elie,  344  note 
Miscellaneous  waste  in  building  industry, 
85-93 

accident  elimination,  examples  of,  87 

accidents,  85 

causes  of,  86 

delays  from  lack  of  plans  and  details, 
88 

design  duplication,  88 

encouraging  signs,  90 


406 


INDEX 


Miscellaneous  waste  in  building  industry, 

material,  waste  of,  90 
preventable  waste,  86 
quantity  surveys,  89 
standardization  by  Associated  Gen- 
eral Contractors,  89 
standardization  of  design  and  details, 

90 

Mitchell,  Dr.  Thomas  W.,  129 
Mock,  H.  E.,  345  note,  357  note,  368  note, 

382  note,  390 

Monetary  cost  of  industrial  accidents,  22 
Montreal,  Canada,  cooperation  in  stand- 
ardizing needle  trades,  76 

National  Association  of  Purchasing  Agents, 

193 

National  industrial  information  service,  30 
National  Metal  Trades  Association,  283, 

284 

National  statistical  service,  31 
New  York  State  construction  accidents,  86 

Opportunities  and  responsibilities  in  elim- 
inating waste,   24 
Ordway,  274  note 

Organization  and  executive  control,  24 
Osborn,  Henry  Fairfield,  344  note 
Over-equipment,  waste  through,  17 

Paget,  Sir  James,  368 

Paper,    standardization,    waste    through 
lack  of,  11 

Philadelphia  bricklaying  wastes,  85 
painting  wastes,  85 
sheet  metal  trades,  waste  in,  84 
slate  and  tile  roofing  waste,  84 
time  lost  due  to  strikes  in  building 
trades,  70 

"Philadelphia  Plan"  for  clearing  work  in 
building  industry,  68,  71 

Pigou,  A.  C  ,  273 

Plan  of  study,  4 

Plant  and  equipment,  maintenance  of,  25 

Poser,  Max,  384  note,  390 

Posey,  William  Campbell,  376 

Potter,  N.  B.,  363  note 

Powers,  Margaret  J.,  277  note 

Printing  industry,  176-208 

classes,  division  of  into,  176 
colors,  standardization  of,  in  ink  and 
paper,  186 


Printing  industry,  craft  distinctions,  197 
display    advertisement,    determining 

quota  time,  182 

equipment,  standardization  of,  185 
field  evaluation  sheets,  203-208 
folding  machines,  types  and  sizes  of, 

186 
individual    plants,    management    of, 

180-184 

industrial  suicide,  200 
labor,  193-200 

management  as  a  whole,  185-193 
overequipment  in,  177 
paper,  brands  and  water  marks,  mul- 
tiplicity of,  187 
color,  189 
finish,  188 

obstacles  to  standardization,  190 
size,  189 

standardization  of,  187 
thickness,  189 
unit  of  count,  190 
piecework  rates,  182 
presses,  variations  in  sizes  of,  186 
production  standards,  employers'  ob- 
jections, 184 
labor's  approval,  184 
recommendations,  summary  of,  201 
responsibility,  dual,  199 
restriction  of  production  by  labor  in, 

19,  196 
scope  and  limitations  of  investigation, 

177 
small  plants  in,  compared  with  steel 

industry,  178 
standardization,  advantages  of,  190, 

192 

constructive  action  for,  192 
losses  through  lack  of,  11 
standards,  how  to  make  effective,  193 
technique  of  management,  179 
theoretical  responsibility  for  waste, 

table  of,  181 

United  Typothetse,  survey  of,  185 
variations    in    column    widths    and 

lengths,  table  of,  191 
waste,  unavoidable,  176 
Price,  C.  W.,  368  note 
Production  control,  12 

faulty,  24 

correlation    of   schedules   with   sales 
policies,  25 


INDEX 


407 


Production  control,  lost,  20-23 
from  ill  health,  20-21 

restricted,  by  labor,  18 

by  owners  and  management,  18 
Production,  in  boot  and  shoe  industry, 
control  of,  142-154 

balancing  production,  153 

comparison  of  time  required  in  four 
factories,  147 

cost  accounting,  153 

delays,  avoidable,  152 

effect  of  complexity  of  operations,  144 

foremen,  responsibilities  of,  153 

gains  through  rapid  manufacture,  147 

lasts,  buying  and  scheduling,  152 

leather,  purchase  of,  150 

machinery,  154 

material,  planning  and  issuing,  149 

organization  of  executive  control,  149 

oversupply  of  materials,  151 

plant  construction  and  layout,  154 

reasons  for  lost  time,  148 

stores  control,  150 

waste,  how  management  can  reduce, 

149 

Public  interest,  need  of,  29 
Public  works,  292-294 

emergency,  292 

New  York  City,  emergency,  292 

prearranged,  293 

San  Francisco,  emergency,  293 
Purchasing  and  sales  policies,  391-397 

adjustment  account  for  overhead,  395 

distribution,  wastes  of,  396 

faulty,  391 

financial  support,  foundation  of,  396 

market  analysis,  396 

material  adjustment  account,  394 

responsibilities  of  management,  392 

sales  expense,  397 

schedules,  development  of,  25 

service  expenses,  396 

speculation    and    unscientific    price 
setting,  392 

speculative    profits    and    unforeseen 
losses,  393 

stabilization,  need  of,  393 

waste  from  neglect  of  protective  poli- 
cies, 391 

Questionnaire  and  evaluation  sheet,  3 
description  of,  34-50 


Questionnaire  and  evaluation  sheet,  index 

to,  36-38 
Quinby,  R.  S.,  252  note,  381  note,  383 

note,  390 

Rand,  Gertrude,  383  note,  386  note,  387 

Recommendations  for  elimination  of  waste, 

24-33 

engineers,  duty  of,  33 
governmental  assistance,  30-32 
labor,  responsibility  of,  27 
management,  responsibility  of,  24 
owners,  responsibility  of,  29 
public,  responsibility  of,  for,  29 
trade  associations,  opportunity  of,  30 

Research,  26 
lack  of,  13 

Residual  unemployment,  275-277 

common  laborer  greatest  sufferer  from, 

275 

lowest  stage  of  employment  in  J1918, 
275 

Responsibility  and  opportunity;  the  point 
of  view,  3 

Responsibilities,  relative,  8 
percentage  of  values  of,  9 

Rector,  F.  L.,  345  note 

Rogers,  Oscar  H.,  357  note 

Rosenow,  E.G.,  363  note 

Sachs,  T.  B.,  345 

Sales  policies,  faulty,  15 

Sawyer,  Dr.,  390 

Schaefer,  A.  E.,  347  note 

Schereschewsky,    J.   W.,  344   note,   345, 
356  note,  383  note,  390 

Seasonal  business  in  shoe  trade  fluctua- 
tions, 135 

increased  cost  over  1914  base,  140, 141 
losses  from  fluctuations,  136    • 
novelty  styles,  effects  of,  139 
production,  ways  of  evening  up,  141 
rapid  turnover  in  retail  stores,  142 

Seasonal  unemployment  in  building  trades, 
67 

Seasonal     industries     employing     skilled 

workers,  266-270 
anthracite  coal  mining,  268 
bituminous  coal  mining,  267 
brick  and  tile  products,  267 
building  and  allied  trades,  266 
clothing  industry,  269 


408 


INDEX 


Seasonal    industries     employing     skilled 

workers,  coal  mining,  267 
millinery  and  hat  manufacture,  270 
seasonal  nature  of  all  industries,  270 
Seasonal  industries  employing  unskilled 

labor,  270-273 
agriculture,  270 
canning  and  preserving,  271 
casual  labor  in  winter,  273 
dock  labor,  272 
lumber  industry,  271 
migratory  labor,  273 
wheat  harvesting,  271 
Sb.oe  trade,  cutters,  cost  of  training,  14 
material  control,  faulty,  10 
rate  setting,  friction  caused  by,  14 
waste  through  production  control,  12 
Shortage  of  housing,  55 
Sources  of  waste  in  boot  and  shoe  trade, 

chart,  130 

in  building  industry,  chart  of,  52 

in  clothing  industry,  chart  of,  94 

Strikes  and  lockouts  in  the  United  States, 

301-314 
causes  of,  302 

in  coal  mines,  table  of,  310 
comparison  of  disputes,    1915-1918, 

table  of,  312 
definition,  301 
due  wholly,  or  partially  to  certain 

causes,  table  of,  304 
industries,  strikes  by,  table  of,  307 
jurisdictional  disputes,  305 
losses,  compensating  factors,  308 

popular   erroneous  views  as  to 

cost  of,  308,  313 
in  wages  and  productions,  308 
to  employees  and  to  employers, 

table  of,  309 

New  York  State  report  on,  311 
number  of,  302 
organized    and    unorganized    labor, 

strikes  by,  table  of,  306 
seasonal  occupations,  310,  313 
State  reports  on,  311-312 
statistical  information,  lack  of,  301 
sympathetic,  305 

symptoms  more  fundamental  malad- 
justments, 314 
table  of,  303 

table  of,  in  building  trades,  69 
wage  earners'  views  of,  311 


Strikes  and  lockouts  in  the  United  States, 

waste  from,  in  building  trades,  68 
Stalker's  Universal  Rate  Service,  189 
Standards,  lack  of,  4 
Standardization     in     printing     industry, 

18,  185-193 

lack  of,  in  ready-made  clothing  indus- 
try, 106 

losses  through  lack  of,  11 

nation-wide  program  of  industrial,  32 

of  equipment,  26 

of  materials,  26 

of  paper  in  printing,  187 

of  product,  26 

performance,  26 

results  of,  in  building  industry,  76 
Stecker,  Margaret  Loomis,  352  note,  360 

note 

Stewart,  Ethelbert,  265  note 
Stokes,  J.  H.,  364  note 
Strathmore  Paper  Co.,  186 
Style  changes,  29 
Sullivan,  John,  189 
Sydenstricker,  Edgar,  352,  359,  364  note 

Tailoring  trades,  production  control,  waste 

through,  12 

Taylor,  Frederick  W.,  75,  220 
Tead,  274 

Technical  Publishers'  Association,  189 
Textile  industry,  240-260 

field  evaluation  sheets,  248-260 

investigation,  scope  of,  240 

size  of,  240 

summary  of  results  of  investigation, 

241 
questionnaire  supplemental  questions 

for,  247 

value  of  products,  240 
waste,  average  per  cent  of,  table  of, 

243,  244 

in  various  plants  compared,  242 
responsibility  for,  table  of,  242 
table  of,  241~ 

table  of  summary  of  points,  246 
Thompson,  H.  E.  K,  174 
Thompson,  Sanford  E.,  75 
Trade  associations,  work  for,  30 
Tyler,  John  M.,  344  note 

Unemployment,  263-300 

American  Federation  of  Labor  on,  296 


INDEX 


409 


Unemployment,  climacteric,  273-274 

common  laborer  the  greatest  sufferer, 
275 

congressional    appropriations    to    re- 
habilitate disabled  soldiers,  276 

employment  exchanges,  foreign,  287- 
292 

employment    exchanges    in    United 
States,  277-287 

immigration  and,  298-300 
as  related  to,  276 

in  metal  trades  industry,  211 

information,  lack  of  systematized  ele- 
mental, 263 

information,  need  for  continuous,  263 

insurance,  294-296 

intermittent  employment,  265-266 

lowest  stages  of,  in  1918,  275 

mental  deficiency  as  factor  in,  277 

need  for  regularizing  employment,  264 

public  works,  292-294 

residual,  275-277 

seasonal  industries  employing  skilled 
workers,  266-270 

seasonal  trades  employing  unskilled 
labor,  270-273 

spreading  out  the  job,  296-298 

temporary  shutdowns  and  layoffs,  265 
United  Typothetae  of  America,  185,  192 

Varnum,  Earl  F.,  374  note 
Vernon,  H.  M.,  366  note 
Vitality,  national,  report  on,  20 

Walters,  Jane  Wolcott,  342  note 
Wage  payment,  methods  of,  26 


Waste,  causes  of  analyzed,  59 

comparison  of  industries  investigated, 

table  of,  10 

difficulties  of  studying,  4 
four  aspects  of,  in  industry,  8 
in  metal  trades  industry,  chart  of,  209 
interrupted  production,  15-18 
in  textile  industry,  table  of  per  cent  of, 

243,  244 

lost  production,  20-23 
responsibilities,  percentage  of  values 

of,  9 

relative,  8 

restricted  production,  18-20 
sources  and  causes,  8-23 

Wasteful  labor  regulations  in  building  in- 
dustry, 79-85 

hours  of  labor  and  wages,  80 
jurisdictional  regulating,  83 
labor  organization,  80 
limiting  apprentices,  83 
opportunity  of  the  unions,  85 
requiring  skilled  men  to  do  unskilled 

work,  82 

restricting  output,  83 
suggestions  from  unions,  84 
uniform  wage,  82 
union  rules,  81 

Westcott,  Dr.  Cassius  D.,  390 

Wheat,  Carl  I.,  note,  317 

Whitney,  Jessamine,  355  note,  356  note 
358  note,  370  note 

Williams,  Sidney  J.,  368  note 

Workers,  management  of,  26 

Workmanship,  ineffective,  15 

Wright,  Wade,  368  note 


Form 


Engineering 
Library 


7J   1 


A     000210650     8 


